The Benefits of Using a Non-custodial Wallet
As a crypto user, it is important for you to use the right crypto app that can help you manage your assets easily. Not to mention, it has to be safe and secure. The first thing that you should have is a wallet for crypto—storage for all your funds and assets.
Crypto wallets have different types but they can be distinguished into two categories: custodial aBlod non-custodial. To put it simply, a non-custodial wallet is a type of digital wallet that allows users to store, send, and receive cryptocurrencies without relying on a third-party custodian or exchange.
Unlike custodial wallets, which hold users' private keys and manage their funds on their behalf, non-custodial wallets give users full control over their assets and allow them to manage their own security, making non-custodial wallets a popular choice among cryptocurrency enthusiasts who value privacy, security, and independence.
While choosing which wallet suits your taste best, we are here to discuss the benefits of having a non custodial wallet like Hippo Wallet in this article, which make this kind of wallet as a best choice for users in comparison to a custodial wallet.
The benefits of using a non-custodial wallet
As a crypto user, it is important for you to use the right crypto app that can help you manage your assets easily. Not to mention, it has to be safe and secure. The first thing that you should have is a wallet for crypto—storage for all your funds and assets.
Crypto wallets have different types but they can be distinguished into two categories: custodial aBlod non-custodial. To put it simply, non-custodial wallets provide you with complete control over your cryptocurrencies while custodial wallets keep your private keys on a server.
While choosing which wallet suits your taste best, we are here to tell you the benefits of having a non-custodial wallet like Hippo Wallet.
1- Complete Control Over Your Assets and Funds
One of the most significant benefits of using a non-custodial wallet is that you have complete control over your assets and funds. With a non-custodial wallet like Hippo Wallet, you can have peace of mind knowing that your private key, mnemonic key phrase, and passcodes are not stored on any server. This means that only you have access to your assets and funds, making it more secure and safe.
In contrast, When you use a custodial wallet, you are essentially entrusting your assets and funds to a third party. This means that if the third party is hacked or goes bankrupt, you could lose all of your assets and funds. With a non-custodial wallet, you are in control of your assets and funds, and you can rest assured that they are safe and secure.
2- Easy and Instant Transactions
Non-custodial wallets do not use any intermediaries in your transactions. Sending and receiving cryptocurrencies using non-custodial wallets are easy, fast, and instant. do not use any intermediaries in your transactions, making it easy to send and receive cryptocurrencies. With a non-custodial wallet, like Hippo Wallet, you can easily manage your assets and make transactions without any hassle.
In contrast, while using a custodial wallet, transactions can take longer because they have to go through an intermediary. This can be frustrating if you need to make a transaction quickly. With a non-custodial wallet, you can make transactions instantly, which is especially useful if you need to move your assets quickly.
3- No KYC Procedure Needed
Because it is non-custodial, no KYC procedure is needed for you to create a wallet. This also gives emphasis on your privacy because non-custodial wallets do not ask for your personal or identifiable information. This means that you can protect your privacy and keep your personal information safe.
In contrast, when you use a custodial wallet, you are required to provide personal information such as your name, address, and social security number. This information is stored on the server of the third party, which can be a security risk. With a non-custodial wallet, you can protect your privacy and keep your personal information safe.
4- High Security
Unlike custodial wallets that entrust the private keys of users to a third party, non-custodial wallets just give this access to the users themselves. Users can always retrieve their wallets as long as they have the private key and mnemonic seed stored in their homes; thus, imposing high security.
In contrast, when using a custodial wallet, you are essentially giving up control of your assets and funds to a third party. This means that if the third party is hacked or goes bankrupt, you could lose all of your assets and funds.
5- Low Fees
Non-custodial wallets like Hippo Wallet offer low fees. When you use a custodial wallet, you are required to pay fees to the third party for their services. These fees can add up over time, especially if you make a lot of transactions. With a non-custodial wallet, you do not have to pay any fees to a third party.
Read more about transaction fees
6- Unlimited Withdrawals
There are no limits for withdrawals when it comes to non-custodial wallets, in contrast to custodial wallets. This means that by using a non-custodial wallet, you can withdraw as much cryptocurrency as you want, whenever you want. While, With a custodial wallet, there may be limits on withdrawals, which can be frustrating if you need to withdraw a large amount of cryptocurrency.
Conclusion
Using a non-custodial wallet like Hippo Wallet offers numerous benefits for crypto users. With complete control over your assets and funds, easy and instant transactions, no KYC procedure needed, high security, and low fees, Hippo Wallet is the perfect choice for anyone looking for a safe and reliable way to manage their cryptocurrencies.
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Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of Hippo Wallet. No information in this article should be interpreted as investment advice. Hippo Wallet encourages all users to do their own research before investing in cryptocurrencies.
