đ Understand the basics before you store your crypto!
đ Custodian vs Non-Custodian Wallets
đ„ Hot vs Cold Wallets
đ Custodian Wallet
Your keys? Not really. A third party platform (like an exchange) holds your private keys.
â Easy access, good for beginners
â provide customer support, password reset
mechanism
â ïž You rely on the providerâs security
â ïž Most of them requires KYC verification to
comply with regulations and country specific policies
Example: Binance Wallet, Coinbase, Kraken, Bybit etc
đĄïž Non-Custodian Wallet
Your keys, your crypto. You control the private keys and are fully responsible.
â Full control and privacy
â ïž Lose your key = lose your crypto
â ïž Needs advanced technical knowledge
Example: MetaMask, Trust Wallet, Ledger etc
âïž Cold Wallet
Offline = more secure.
Not connected to the internetâharder to hack.
â Great for long-term storage
â ïž Less convenient for quick trades
â ïž Vulnerable to physical damage
Example: Hardware wallets (Ledger, Trezor), Paper wallets etc
đ„ Hot Wallet
Online = more convenient and flexible.
Always connected to the internet.
â Easy access and fast transactions
â ïž More vulnerable to hacks. Needs constant patching or updating for possible security holes.
Example: Mobile apps, web wallets, exchange wallets
đĄPro Tip:
Use hot wallets for daily use & trading. Use cold wallets for long-term holding (HODLing). Choose custodian for convenience or non-custodian for full control.
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