![]() A custodial wallet is still a wallet, but if you don’t have access to the wallet's private keys and must ask permission from the exchange to move or spend your crypto, then whose wallet is it? We bought crypto on a centralized exchange, and the exchange held the crypto. The alternative would be custodial wallets, which is how many of us started our crypto journey. Another name for a wallet you control is a self-custody wallet. The crypto wallet types above are all non-custodial, meaning you hold your crypto rather than a third party like an exchange providing custody. Neither wallet type has reached broad adoption as of yet, as both bring some limitations, such as challenges connecting to dApps. ![]() Smart-contract wallets - as the name suggests - use smart contracts to secure your crypto, letting you set withdrawal limits and recovery options.Online crypto wallets are accessed through a website or crypto wallet app - and likely use smart contracts under the hood (Nexo Wallet does).Online crypto wallets, like the Nexo Wallet, covered in our Nexo exchange review, and smart-contract wallets, such as Argent Wallet and Gnosis Safe, round out the crypto wallets list. Examples: Trust Wallet, Ledger, Sparrow.Con: Cumbersome to use for routine transactions. ![]() Pro: Ideal for businesses, crypto project treasuries, or high-value portfolios.Multi-sig is one of the safest crypto wallet types, and the feature is supported by several top crypto wallets like Trust Wallet and Electrum. ![]() For example, you might need two of three signatures to approve a transaction. Multi-sig wallets require a predefined number of signatures (approvals) to sign transactions. To get in, you’ll need more than one key. You can think of a multi-sig wallet like a vault door with more than one lock.
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