What are the currency wallets?

Cryptocurrency wallets are mainly divided into two categories: custodial wallets (where private keys are managed by a third party) and non-custodial wallets (where users keep their own private keys). Managed wallets are easy for novices to use, but their security is controlled by a third party; non-custodial wallets have high security, but are more difficult to use. Specific classifications include hardware wallets (physical devices, private keys are stored offline), software wallets (running on computers or mobile phones), and paper wallets (private keys are printed on paper). Novices are advised to use custodial wallets, experienced ones are recommended to use non-custodial wallets, and for large amounts of assets it is recommended to use hardware wallets to ensure security.

What are the currency wallets?

Cryptocurrency wallets are divided into two categories: custodial wallets and non-custodial wallets.

Hosted wallet

• Features: Private keys are managed by a third party, which is convenient and fast, suitable for novices.
• Advantages: Easy to use, no need to keep private keys yourself.
• Disadvantages: Asset security is controlled by a third party and may face risks of hacker attacks or internal cheating.
• Representative platforms: Binance, Huobi, OKX.

Non-custodial wallet

• Features: Users keep their own private keys, control their assets independently, and have high security.
• Advantages: Asset security is not controlled by a third party, and the private key is only controlled by the user.
• Disadvantages: It is difficult to use, and the loss of the private key will result in the inability to retrieve the assets.
• Representative platforms: MetaMask, Trust Wallet, Ledger Nano X.

Specific classification

Hardware wallet: Physical devices, such as Ledger Nano X, private keys are stored in an offline environment, with extremely high security.

Software wallet: Install and run the software on your computer or mobile phone. The private key is kept by the user, making it convenient to manage multiple accounts.

Paper wallet: Print the private key on paper, which is safe and reliable, but not easy to manage.

Selection suggestions

• Newbies are recommended to use a managed wallet, which is convenient and fast.
• Experienced users recommend using non-custodial wallets for high security.
• For large amounts of assets, it is recommended to use a hardware wallet to ensure safety.

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