What Is a Non-Custodial Wallet?
A non-custodial wallet, also known as a self-custody wallet, is a digital wallet that allows individuals to securely store and manage their digital assets without relying on a third-party custodian. It promotes financial autonomy and privacy, offering a secure and accessible way to manage digital wealth.
Unlike custodial wallets, which involve trusting a centralised entity with the custody of assets, non-custodial wallets give users full control and ownership of their funds, providing them with security over their digital assets.
Key features of a non-custodial wallet include:
- Security: Non-custodial wallets use cryptographic techniques to secure private keys, ensuring that only the wallet owner can access and manage their assets.
- Control: Users have complete control over their funds, as they hold the private keys required to initiate transactions.
- Privacy: Non-custodial wallets offer enhanced privacy, as users do not need to disclose personal information to a third party.
- Decentralisation: By eliminating the need for intermediaries, non-custodial wallets promote the principles of decentralisation and empower individuals to manage their finances.
- Compatibility: These wallets are usually compatible with multiple blockchain networks, allowing users to store various types of digital assets in one place.