Are self-custody wallets better than custodial wallets?

Lower Fees: Unlike custodial wallets, which charge transaction fees to cover management and security costs, self-custody wallets have much lower transaction fees. This makes them cheaper for avid crypto traders who value security and privacy. Self-custody wallets give you pros similar to having a physical wallet. You have your money with you.

What is the difference between self-custody and custody?

Self-custody is like putting cash under your pillow while custody is like a bank account. Only that, instead of cash, you’d put a 12-word Mnemonic under your pillow. Note that due to ERC20’s approve function, having tokens shown in your non-custodial wallet might still mean that smart contracts can control them.

How does self-custody work?

Self-custodying requires a bit of technical know-how and trust in yourself, as you’ll be your own banker as well as head of security. The process of self-custodying your crypto assets involves finding a reliable self-custody wallet provider then transfering your funds from a centralized exchange to this new wallet.

What is a self-custodial Crypto Wallet?

Self-custodial crypto wallets give users complete control of their crypto assets and private keys. Custodial wallets are offered by a third party that stores your crypto assets on your behalf. These kinds of wallets are typically easy to use, but the big disadvantage is you don’t have full control over your assets.