This is for those who have no idea about Custodial Wallets and Non-Custodial Wallets.
?? Custodial Wallet is defined as a wallet in which the private keys are held by a third party. Meaning, the third party has a full control over your funds while you only have to give permission to send or receive payments. Here’s how the custodial wallets work: A (third party in this case) asks B (users in this case) to transfer their fund on a particular address / place, but A does not receive any private key to that storage address. The third party authority, manages all the funding, with the condition that users won’t be able to perform any transaction without their involvement. Sample of the Custodial Wallet we use is COINSPH, COINBASE wherein the company / agency has the full control of the functions of their wallets. So anytime he can ideactivate your wallet with all your funds and assets.
?? Non-Custodial Wallets is a type of Blockchain wallet that lets you be your own bank. This implies that you have full control over your funds and on the associated private key. These wallets serve users with two types of private keys to perform a transaction.
- 1. Mnemonic Seed - It is usually a value of 12-24 word designed by encapsulating the real private key. This key, stored on the user devices, allows them to access multiple accounts simultaneously.
-2. Raw Private Key - It is the actual private key in raw form (alphanumeric string), which is also stored on the user device. Here you or we have full control over our wallet like those crypto wallets where we have the pass phrase, seed, private keys and everything we hold to open and / or recover our wallets at any time. So when you lose your pass phrase, seed or private key, your peg will crack! Am sure you learned something from this post. Take care of our wallets.
