Non-Custodial Wallets

non-custodial wallet is a type of wallet that allows users to hold and own their private key while having full control of their funds. Keys are held in encrypted storage.

Currently, several different types of non-custodial wallets exist today:

  • Hardware Wallets: A physical device similar to a flash drive that is disconnected from the internet.
  • Web-Based Wallets & Mobile Wallets: These can be accessed from any device with a private key login.
  • Desktop Wallet: These reside on the desktop but can be stolen if the computer is taken away.

Non-custodial wallets remain tough to use. Traditionally, non-custodial wallets make users remember a 12–24 word seed phrase composed of random words to access an account. The phrase is used as a backup password recovery method. Additionally, custodial wallet providers force users to enter an equally long and perhaps even more confusing alphanumeric code to access a wallet (the private key).

Then, non-custodial wallets have a similar alphanumeric code they have to give in order to receive funds (the public key).