▫️non-custodial portfolios

Now we understand what a custodial wallet is, and its main pros and cons, what about non-custodial wallets? This is a type of wallet where the owner of the cryptocurrency takes direct responsibility for managing its keys.

This means that if the owner somehow loses/lost the keys, the cryptocurrency in the wallet could be lost forever. As noted earlier, they can come in the form of web browser-based software, common downloadable software, hardware, or in paper form. Hardware wallets are widely seen as the most secure way to store cryptocurrency wallet keys.

Pros of the Custodyless Wallet

As cryptocurrency purists who seek to completely throw off the yoke of government/centralized financial institutions argue, custodless wallets give investors complete control over their assets. When stored in a non-custodial wallet, no centralized entity can confiscate or freeze a digital asset.

With custodless wallets, there is no barrier to participation in the global cryptocurrency ecosystem. Anyone with an Internet connection anywhere in the world can set up a wallet without facing KYC restrictions.

Another benefit of custodeless wallets is that it is easier to engage in digital asset transfers because they interact directly with the blockchain. This means that custodeless wallets, unlike their custodial counterparts, in many cases have direct access to the growing Decentralized Finance (DeFi) ecosystem.