Which Crypto Wallet App Type Should I Choose?

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Which Crypto Wallet App Type Should I Choose?
BY - BLOCKTECH BREW
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About Crypto Wallet App
Before we proceed to review the best
BSC-supporting crypto wallets, there are a few
things that you must consider. When you set out
to explore crypto wallet app, there are a few
points that you must first get clear. These key
points are

• Should I get a software or hardware wallet?
• How secure is the wallet?
• How the wallet stores my private keys?
• What are account recovery options in the wallet?
• Does the crypto wallet support other blockchains
  along with BSC?

Also, there are different types of crypto wallets
in the market based on custodianship, usability,
and security. Its important that you understand
these wallet types before making your choice.
Let us have a look at each one of them.
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Custodial Vs Non-Custodial Crypto Wallets
One major factor that you must consider while
choosing a crypto wallet is the custody of the
private keys. Why is the custody of private
keys essential? Security of the private keys is
crucial as the one who is in control of your
private keys can access all your cryptocurrencies.
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Custodial wallets
Custodial wallets are the ones where the third
party has the authority over your private keys.
In these wallets, your private keys are stored
online on third-party servers which are prone to
cyber-attacks. In a way, you can say that you do
not own the private keys in the true sense.
People consider non-custodial crypto wallets
safer than custodial crypto wallets. It is
because, in non-custodial wallets, you have
complete custody of your private keys. The third
party only provides software assistance. The
private keys are stored locally offline on your
device. It is your responsibility to ensure the
security of your private keys.
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Non-custodial wallets
Non-custodial wallets seem safer as you have
private keys, but if you lose them you cannot
recover your cryptocurrencies. In these wallets,
you get a 12-word seed phrase that you must keep
safe. It will help you recover your account in
case of an emergency. If you lose the backup
seed phrase, you cannot recover your account. Not
even their customer care can help you access your
account. On the other hand, custodial wallets
are more convenient to use. In any case, if you
get logged out of your account, customer service
can help you access it. Most of the BSC
compatible wallets are non-custodial wallets
where you own your private keys. It also allows
you to seamlessly interact with Dapps on BSC.
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Hot Vs Cold Crypto Wallets
Hot crypto wallets are software wallets that are
connected to the internet. Software wallets can
be custodial or non-custodial crypto wallets. If
you consider hosted crypto exchange wallets,
those are custodial. Cold crypto wallets are
hardware wallets. These wallets are similar to
hardware drives which you connect to your
computer, transfer your cryptocurrencies and
store them physically in the wallet. Being
connected to the internet hot wallets are prone
to cyber risks. Whereas the cold wallet stores
the cryptocurrencies offline. People consider
hardware crypto wallets as the safest option to
store cryptocurrencies. But these wallets are
impractical for crypto transactions. It will very
inconvenient for you to use hardware wallets to
interact with dApps on BSC.
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Thank You
BLOCKTECH BREW
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