Are non-custodial crypto wallets a practical option for the everyday hodler?

Non-custodial wallets are more secure than custodian wallets, but it may take time for everyday and non-technical users to get used to it get used to. Analysis

As crypto ownership becomes more commonplace, holders will need to think about how they protect and hold their assets. The safest option is to store cryptocurrency in a personal wallet.

Crypto wallets are programs that allow users to store, send, and receive cryptocurrencies. Each wallet has a private key that allows the wallet to be spent. Private keys are strings of cryptographic code that allow owners to spend funds in a wallet, as well as prove ownership. Wallet information is also stored offline, reducing the risk of hacking attempts. Daily non-technical crypto users may benefit from increased security, but this may come at the expense of convenience, depending on their needs.

A custodial wallet is a kind of online cryptocurrency wallet that a third party manages, like an exchange, after users make their first cryptocurrency purchase. In other words, the exchange is the custodian, responsible for keeping the user's money safe and keeping track of the keys. The bulk of client money is housed in cold storage hardware wallets at major US crypto exchanges.

A private wallet is less secure than a non-private wallet. Yet many people still choose them because they are easier to use and involve less responsibility. If users forget their password for their exchange account, they can likely reset it through established identity verification processes.

With a non-custodial cryptocurrency wallet, users are the sole custodians of their private keys and, therefore, stored assets. Non-custodial wallet because it removes the need for a trusted third party and in some ways is more secure than custodial wallets.

There are many types of non-custodial wallets, including browser-based ones, software wallets for mobile phones and computers, and hardware wallets. Hardware wallets, which come in different formats, are supposed to offer the highest level of security for storing crypto. These digital currency wallets look like USB drives but have a...