Self Custodial Wallets 🔑

Earlier we learnt about the concept of wallets. But there's a catch, you don't have a 100% control on your wallet. Wait! Wait! Don't be confused - The solution to this problem is self custodial wallet 🔒

What do you mean by a custodial wallet?

A self-custodial wallet (also referred to as a decentralized wallet or non-custodial wallet) is a cryptocurrency wallet that gives users complete control of their private keys and funds. Third parties don’t have access to users’ private keys, and the funds held in these wallets are exclusively owned and accessible by the user.

A custodial wallet, on the other hand, holds the private keys on behalf of the user, effectively holding their assets for them. In that sense, custodial wallets function in the same way as banks. They hold your money, which you can access through them — provided you haven’t broken any rules that could lead to loss of access.

With self-custodial wallets, users always have complete control over their funds and private keys. Your funds and keys are as safe as you manage to keep them. The risk of a data breach leading to loss of funds is highly dependent on your own behaviour. In short, all the details, including the private keys, of your crypto wallet rest with you.

That's it for the day folks, Web3Shala Signing Off ✌🏻

Have a nice day :)Keep Learning 🙏🏻