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What Does Non-Custodial Mean?
What Does Non-Custodial Mean?

Learn how Best Wallet is fully non-custodial and what this means for your crypto.

Updated over a week ago

One of the benefits of using Best Wallet is that it is truly non-custodial, but what exactly does that mean?

In short, a non-custodial crypto wallet means that you have full ownership and control of your crypto. Whereas a custodial crypto wallet is managed by a provider or service, your Best Wallet is managed solely by you.

That control, or custody, mainly refers to your wallet’s private key, and indirectly, all your crypto funds.

Your wallet's private key is crucial in proving ownership of your crypto and authorising transactions. Custodial wallet providers have access to and store your wallet’s private key, meaning that they can essentially access and transact your crypto without your permission.

However, with non-custodial wallets like Best Wallet, you are the sole owner of your wallet’s private keys, ensuring full control over your digital assets. Best Wallet cannot access or use your private keys and provides a means for you to securely and privately buy, swap, send, and sell crypto.

There’s a common saying in crypto: Not your keys, not your crypto. That’s why so many choose non-custodial wallets like Best Wallet because it ensures that your crypto remains yours.

Non-Custodial vs. Custodial

To better understand non-custodial crypto ownership, it's helpful to compare them with custodial crypto services:

  • Custodial (also known as Third-Party Custody): This is when your cryptocurrencies are managed by someone else, such as a centralised exchange (CEX) like Coinbase or Binance. Here, the exchange provides you with a crypto wallet but holds your private keys and crypto assets. While this might seem convenient, it comes with risks, such as the potential for hacks, regulatory issues, or even the freezing of your assets by a centralised exchange.

  • Non-Custodial (also known as Self-Custody): In contrast, non-custodial means you manage and control your private keys through Best Wallet. This approach gives you complete autonomy over your digital assets, reducing the risk associated with third-party control.

What are the benefits of non-custodial with Best Wallet?

As Best Wallet is truly non-custodial, you, and only you, can access and use the private keys to all your wallets and crypto funds. This gives you:

  • Full Control: You decide how to use your assets without needing permission from a third party. Buy, sell, transfer, or hold your cryptocurrencies as you see fit.

  • Enhanced Security: By holding your private keys, you reduce the risk of losing your assets due to third-party breaches or mismanagement.

  • Privacy: Non-custodial wallets like Best Wallet allow for greater privacy since you're not required to share personal information or undergo KYC procedures as you would with a centralised exchange or custodial wallet.

  • Direct Access to DeFi: With Best Wallet, non-custodial means direct access to the decentralised finance (DeFi) ecosystem, allowing you to participate in decentralised exchanges, staking, yield farming, and other activities without intermediaries.

How to keep your crypto safe with Best Wallet

While non-custodial offers numerous benefits, it also comes with the sole responsibility of safeguarding your crypto. Here are some tips for Best Wallet users:

  • Secure Your Private Keys: Never share your private keys or secret recovery phrases with anyone and avoid storing them online or in easily accessible places.

  • Backup Your Wallet: Regularly backup your Best Wallet, following the app's guidelines to ensure you can recover your assets if needed. We recommend making physical copies of your wallet’s private keys and any secret recovery phrases generated in Best Wallet. Learn how to secure your Best Wallet and crypto funds.

  • Set Up 2FA/Biometrics: Protect your Best Wallet by enabling 2FA and consider using additional security features such as biometric authentication.

  • Stay Informed: Leverage Best Wallet's educational resources to stay ahead of security practices and the latest in crypto trends. Stay up-to-date on all the latest developments by following the Best Wallet social accounts.

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