If you're starting on your crypto journey, there are several things you'll learn along the way, ranging from basic to technical, depending on your level of interest and curiosity. However, regardless of the path you choose in your crypto journey, a crypto wallet is one of the most important components and a must-have tool.
A crypto wallet is software or hardware that employs blockchain technology to administer, transmit, and manage cryptocurrency securely. Unlike your traditional wallet, which stores bill notes, crypto wallets only store digital assets - crypto assets and non-fungible tokens (NFTs).
Crypto wallets are typically classified as custodial or non-custodial. Custodial wallets safeguard your private keys (the central authority is responsible for your security). In other words, a custodial wallet is a third-party application that manages your cryptocurrency private keys for you. Non-custodial wallets, on the other hand, put you in charge of controlling your private keys, putting your security in your own hands. As a result, you are your own bank, conducting transactions without the assistance of a third party. You make your own rules and manage your cryptocurrency assets however you see fit.
Thus, the key distinction between custodial and non-custodial wallets is the custody of the crypto asset. You now know the primary distinction between the two types of cryptocurrency wallets. Suppose you're still unsure which to use as a beginner or why one is a better bet. Don't worry; this article will explain what type of crypto wallet you need as a beginner.
Choosing a Crypto Wallet
As a beginner, you'll more likely receive or buy your first crypto asset from a centralized exchange because it's required to trade cryptocurrencies. Still, it can also serve as a storage medium for your crypto assets, similar to crypto wallets. As a result, crypto exchanges serve as an intermediary, allowing you to use your fiat currency to buy a cryptocurrency and vice versa.
When you use a centralized cryptocurrency exchange, you are, by default, given a wallet to store your crypto assets managed and controlled by the exchange's authority. In other words, receiving and purchasing your crypto assets from a centralized exchange automatically assigns you a custodial wallet whose private key is managed by the third-party application. As a result, you don't have to remember your seed phrases because a third party does it for you. This third party holds all of your crypto assets in custody (typically a centralized exchange).
Of course, using a custodial wallet has advantages, particularly for you as a beginner. Some advantages of using a custodial wallet as a beginner include the following:
Safety of Private Keys: When using a custodial wallet, you do not have control over your keys. As a result, the third-party platform is responsible for protecting the private key or mnemonic. As a result, you cannot misplace your keys because you only need to log in to your account.
Access to Fiat Currency: Because most custodial wallets are managed by a centralized exchange (CEX), trading crypto assets for fiat currency and receiving money in your bank account is simple and usually cheap.
Backup Options: Another significant advantage of using custodial wallets is the ability to keep your money safe. The wallets used here are frequently administered by a central authority that assists or provides a useful service in terms of wallet backup. This is useful when you need to pause or cancel a transaction, as well as when you need to restore from a previous version.
While a custodial wallet gives you less control over your assets, starting with a custodial wallet service as a beginner is recommended because it requires less responsibility and is usually more convenient. Several custodial wallets are available, but Cwallet is a more user-friendly wallet that does not require mandatory KYC verification like others. Cwallet offers the best crypto wallet features and only requires you to sign up with your mobile phone or a third-party platform such as Twitter, Telegram, Discord, or Reddit.
On the other hand, non-custodial or self-custody wallets allow you to have complete control over your assets by placing the safety of your private keys and funds in your hands. Unlike a custodial wallet, which is protected by a third-party application, there are several precautions you must take when choosing a self-custody wallet. One of these is securely storing the mnemonic phrase or recovery seed, which contains 12 to 24 random characters and words and allows you to generate your public and private keys. It's important you keep the mnemonic phrase safe from unauthorized access, as losing the mnemonic phrase will result in the loss of your crypto assets.
However, despite the technicality of using non-custodial wallets and the difficult-to-understand user interface for beginners, non-custodial wallets have advantages. Among these advantages are the following:
- You have complete control over your assets anytime, anywhere, and without interruption.
- You do not need to provide personal information to access or move your funds.
- Transferring, storing, and trading assets do not require the permission of a third party.
Although non-custodial wallets are not recommended for beginners due to their difficulty setting up and using them, with Cwallet, you can enjoy a user-friendly non-custodial wallet experience with access to beautiful and easy-to-understand asset overviews while maintaining complete control over your assets, giving you the best of both worlds of custodial and non-custodial wallet features.
Cwallet - The Best of Both Worlds
Cwallet is a one-of-a-kind crypto wallet with custodial and non-custodial features. It is a secure, convenient, and flexible on-chain and off-chain wallet that allows you to manage and trade 800+ crypto assets in one place.
Cwallet gives you the best of both worlds in a single app, regardless of whether you prefer a custodial or non-custodial wallet. As a result, you can easily switch between custodial and non-custodial wallet options within the app with a single button. More importantly, you can transfer your crypto assets at any time from Cwallet's custodial wallet to the non-custodial wallet without incurring any gas fees.
Why Choose Cwallet as a Beginner?
As a newbie who does not want to be left out of the crypto world, you can begin your journey without worrying about "which crypto wallet should I choose." With the assurance of secure funds and the combined features of a custodial and non-custodial wallet, you can begin investing immediately on Cwallet.
Cwallet caters to the complex crypto needs of individuals and businesses with features such as tip codes, airdrop games, giveaway tools, mobile refills, bulk payment, request invoices, payment buttons, etc. It is more than just a crypto wallet where users can send and receive money and buy and sell cryptocurrency. It is a must-have tool for everyday crypto solutions.
- Real-time asset value information,
- The most recent and lowest transaction rate,
- A giveaway tool that allows anyone to create a giveaway with their choice of rules and regulations,
- An exclusive bot that allows users to send/receive tips and airdrops and set up referral programs on several social networks, including Telegram and Discord.
What's more? You do not need KYC Verification to operate a Cwallet account; you only need to create an account with your mobile phone or a third-party platform such as Twitter, Telegram, Discord, or Reddit.
Cwallet is the only wallet you'll ever need for almost all your cryptocurrency needs.
Why wait any longer? Download the Cwallet App today to gain access to over 800 cryptocurrencies across 50 networks and start your cryptocurrency journey.