In cryptocurrency, everyone has a certain kind of wallets on where they put or storing their assets. These wallets are only digital and can be prone to hacking that's why it is important to know which kind of wallet will you use for holding your cryptocurrency. There are 2 kinds of wallet that everyone using - the custodial and Non-custodial wallets.
What are custodial and Non-custodial wallets?
Custodial wallet - From the word itself, a custodial wallet like Binance, Coinex, Kucoin and other exchanges have full custody over the assets you are storing with them. This wallet doesn't have a seed phrase or private which is considered unessential for your assets.
Non-custodial wallet - This kind of wallet is the most secure kind of which you have private key that only you can gain access to it. Wallets like Trezor, Exodus and Bitcoin.com are considered as Non-custodial wallet because they provide seed phrase or a private key that only yourself know about.
Choosing a kind of wallet is very essential for safetiness of the assets that we have. Just always remember to keep or write down your private key or seed phrase so whenever something bad happen to your device, you can easily restore your wallet together with the cryptocurrency it have. And make sure you are not sending your private key to anyone because when someone can have your private key, they can also have access to your asset.
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