Techugo is a leading app development company that specializes in creating non-custodial wallets apps. With a team of experienced developers, designers, and project managers, Techugo has successfully delivered several high-performing and secure non-custodial wallets apps to clients worldwide. The apps are designed to provide users with complete control over their cryptocurrencies, without relying on any third-party custodian. Techugo ensures that the non-custodial wallets apps are integrated with advanced security features like two-factor authentication, end-to-end encryption, and biometric login. With a focus on user experience and security, Techugo delivers reliable and user-friendly non-custodial wallets apps that cater to the diverse needs of cryptocurrency users.

1. Custodial Wallets Vs Non-Custodial Wallets: An In-
Depth Look at the Differences
With the advent of blockchain technology, there’s a technical revolution
throughout the world. It has changed the world of technology by creating
futuristic services. And with the evolution of blockchain, we have come across
digital money i.e. cryptocurrency.
In no time, the way cryptocurrency is gaining popularity worldwide. It won’t be
wrong to believe that it has a promising future. People have been inclined to
invest in cryptocurrency to explore the future of possibilities.
Now, with trading and exchanging cryptocurrency, we can face the need for
crypto wallets to store funds and assets.

2. Since the talk of cryptocurrency wallets has started, custodial wallets and non-
custodial wallets will be the highlight. These digital wallets store crypto. However,
both have distinct features.
And being into cryptocurrency, it is imperative to understand everything about
these wallets. Thus to let you know every nook and cranny of crypto wallets, this
article has brought you all information.
Be it custodial or non custodial wallets; you will find each and every little detail
that can help you to choose the best crypto wallet for business. There is a
slight difference between custodial and non custodial wallet. So, without thinking
much, start reading the information.
Crypto Wallets: Definition and Types
In any situation, the desire to participate in the rapidly developing crypto
landscape is undeniable. In this tech-driven era, obtaining cryptocurrency is
accessible by using various techniques, like buying it through an exchange.
Additionally, people might receive cryptocurrency as remuneration for their work
or as a bonus for performing tasks like mining or staking.

3. For instance, a centralized exchange like Binance lets you buy Bitcoin. However,
as long as you have a external crypto wallet for securely holding your crypto
assets, it doesn’t matter where you got them from. A crypto wallet creates a
distinctive address to find your assets on the blockchain.
Using two separate types of keys; such as public and private keys, crypto wallets
secure your cryptocurrency. The public key is sharable with anyone. However, the
private key functions more like a password to lock your assets securely. You must
protect the private key, which grants access to all of your digital assets and
tokens, must be protected at all costs.
In addition, there are two types of wallets, custodial and non-custodial,
depending on the level of security for your money. Moreover, to choose the best
option for your cryptocurrency endeavors, carefully consider their distinctions.
To assist you in making the best decision for choosing a crypto wallet, here is a
detailed description of each type of wallet. Consequently, you can find a
comparison of custodial wallets vs non-custodial wallets based on some specific
factors.
What Is a Custodial Wallet?

4. Undoubtedly, custodial wallets come into the limelight as the talk about the
difference between custodial wallets and non-custodial wallets starts. The term
“custodial” makes it quite clear that these wallets would take custody of
something. Simply put, best crypto custodial wallets are cryptocurrency wallets
that hold users’ private keys in trust. As a result, on behalf of the user, the wallet
providers hold power over the latter’s funds. Custodial wallets are the most
common and the first choice of newcomers like Coinbase.
One of the most important benefits of custodial wallets for novices is their
simplicity. You don’t need a high level of cryptocurrency technical expertise to use
a custodial wallet crypto. Enter your email and password to create an account,
then sign in to the custody wallet. However, in the case of custodial wallets, you
must entrust the wallet provider with the custody of your money.
It’s crucial to consider that the entire purpose of cryptocurrencies is to give you
total control and ownership over your money. Contrarily, custodial
cryptocurrency wallets obscure cryptocurrency’s core purpose by taking access
from the wallet owners. Moreover, with a custodial wallet crypto, you don’t
actually invest in a decentralized digital currency.
It is important to understand that you hand over your fund security to another
entity in a custodial wallet. While renowned custodial wallet providers don’t steal
users’ funds, accessing your wallet is impossible if it locks you out. It raises
questions about the credibility of custodial wallets, as sometimes, wallet
providers may lock out the users without prior notice.
Custodial Wallet: Benefits and Limitations
Benefits of Custodial Wallets

5. Fast And Free Transactions
Unlike the other wallets, there is no transaction fee associated with custodial
crypto wallets. It provides an entirely free-of-cost wallet ecosystem that is easy to
use. With this, you can experience saving considerable money annually and make
transactions without paying any charges.
Excellent UI/UX
Crypto custodial account wallets give you a high-end user experience to access
your wallet without hassle. Regardless of experience with cryptocurrency, one can
use the wallets through easy navigation. And it is a piece of cake to find whatever
you anticipate in your wallet.
Maximum Backup Chances
As mentioned earlier, a third party manages your custodial wallets that secures
your fund and private key. It creates a backup option for your transaction, as the
exchange authority is responsible for the transaction. It is possible to restore or
undo a transaction with the help of the custodial wallet service provider.
Private Keys Regain Access

6. In case you lose the private key of your wallet, the exchange authority can help
you regain access. Nevertheless, custodial wallet users encounter authority
problems over their wallets. Third-party is helpful to access their account as the
wallet providers control your wallet.
Limitations of Custodial Wallets
However, it seems simple and easy to access your cryptocurrency with a custodial
wallet; it snatches all your authority over your wallet. Be it good or bad for a
newbie, here are some limitations that you face with your custodial wallets:
Full Third-Party Control
You lose control over your cryptocurrency and private keys with a custodial
wallet. The custodial party oversees your every transaction. Also, the third party
controls the operations of funds and can freeze your funds stored in the wallet.
KYC Needed
To access your own funds and assets, you need to complete KYC for your
custodial wallets. To start any crypto transactions, you need to verify your identity
by giving the required documents. Moreover, it violates the anonymity concept if
it requires proof of identity to operate.

7. Only Online Facility
You can’t access your custodial wallet without an active internet connection. In
case of emergency, you can’t access your crypto wallet if there is no internet
connection. Thus it will be challenging for you to use your custodial wallet from
somewhere you can’t find proper internet connectivity.
Chances of Data Breaching
When you use custodial wallets, it stores funds in cold and hot wallets. However,
such wallets are not easy to hack, still prone to data breaching.
Top 5 Custodial Wallets
• Binance
• Bitgo
• BitMex
• Blockchain.com
• Free Wallet
What Is a Non Custodial Wallet?

8. The setbacks for custodial wallets turn out the advantages of non-custodial
wallets. Since non-custodial crypto wallets are an alternative to custodial
wallets, non custodial wallets are an apt example of decentralization. Usually
represented as a decentralized wallet are crypto wallets, entrusting users with
private keys. Unlike custodial wallets, in this, the user possesses control over
private keys. In addition, only users have the authority to access crypto stored in
the best non custodial crypto wallets. It clearly specifies the ownership of the user
on the held funds and assets. This way, the wallet ensures improved security of
your cryptocurrency.
While there are some advantages with non custodial wallets, it comes with a
critical condition. The user must have a basic understanding of restoring and
backing up wallets. Additionally, if you use the best non custodial wallet, you
must take complete responsibility for the security of cryptocurrency. Since the
wallet user is responsible for the security of their private keys, they must
understand how to back up a wallet securely is necessary.
In most circumstances, the private key consists of a 12- to 24-word recovery
phrase. And it is important for users to keep the recovery phrase in a safe place.
For instance, write on paper or type in notes on your device, but make sure to
keep them safe in a safe place.
The recovery phrase helps you to regain access to your wallet in situations when
you lose access. Moreover, anyone can use their non-custodial crypto wallet using
the recovery phrase. Therefore, it is important to consider using a non-custodial
crypto wallet to store your cryptocurrency. Thus, do not share it with anyone.
Non-Custodial Wallet: Benefits and Limitations
Benefits of Non-Custodial Wallets

9. You can make use of a fantastic range of benefits from Non-custodial wallets,
which are as follows:
Total Control
People who have begun investing in cryptocurrencies and don’t like having a third
party oversee their assets must use non custodial crypto wallets. Additionally,
users benefit from a non custodial wallet’s full control over the funds and private
keys, providing the optimal user experience.
No Risk of Data Exposure
No intermediary implies that no one will get your information or who you are
(complete anonymity). Therefore, there is no chance that the funds or other
information can be exposed and misused.
Fast Withdrawals
The crypto non custodial wallets simplify the asset withdrawal procedure. Since a
third party plays no part in carrying out the transactions, the process is quick.
Limitations of Non-Custodial Wallets

10. Cons Of Non-Custodial Wallets
With the opportunity to handle your wallet to store cryptocurrency, you face a
few challenges. Here are some of the limitations you face with your non-custodial
crypto wallets:
A Heavy Responsibility
The user is in charge of everything, including keeping the keys in a secure place. A
minor error can result in a larger financial loss. Whether you keep your private
keys on your desktop or in a hardware wallet, theft can occur anywhere.
Poor UI/UX
When it comes to providing a high-quality user interface, non custodial wallets
are not the greatest. The wallet’s interface may be challenging for users.
Losing Keys Is Losing Money
The only method to recover your wallet is using your private keys. There is no way
to acquire access if you lose your private key. Your wallet may log you out, which
could lead to a financial catastrophe.
Top 5 Non-Custodial Wallets

11. • Electrum
• Ledger Nano X
• Trezor One
• Wasabi
• Zengo
Custodial Wallets Vs Non-Custodial Wallets: Key Differences
Criteria Custodial Wallets Non-custodial Wallets
Fund Access
Control of private keys is
in the wallet provider,
which means they can
also access the user’s
funds.
No one else can access your wallet
and fund. You get complete control
of your wallet.
Fund
Recovery
Easy options for recovery
if you lose access to login
credentials for the wallet.
If you lose private keys or recovery
phrases, there’s no way to recover
funds from your wallet.
Security
As it is connected to the
internet, it is prone to
hacking by online
invaders.
Cyber attacks won’t be affected
without internet connections.
However, keeping the private keys
and recovery phrases secure is
essential.
Accounts
Creation
Long KYC and AML
procedures might be
exhausting for a user to
Simple and straightforward account
creation. No KYC and AML are

12. create accounts. needed.
User
Friendliness
Very interactive interfaces
that make using custodial
wallets easy and
convenient.
Technical understanding is a must
for non-custodial wallets that
reduces user-friendliness.
Which Cryptocurrency Wallet is Good to Pick to Keep Your Digital Assets?
Crypto wallets are ideal for storing your valuables, depending on your
circumstances and requirements. The crypto wallet should support the type of
cryptocurrency you want to store and trade. Additionally, the wallets must update
from time to time to fit your needs. Famous non custodial wallets to hold
cryptocurrency assets include MetaMask, MathWallet, and TrustWalklet. But
always remember that a non-custodial wallet is best if you want to communicate
with the DeFi applications.
So, pick a external crypto wallet that can fulfill your requirements and is up to
date. Moreover, if you find it challenging to choose the right crypto wallet for
your needs, Techugo is here. Connect with the blockchain experts by filling out
the contact form or dial the number to get immediate assistance.

13. Contact Us
Address :- A-26, Lohia Rd, A Block, Sector 63,
Noida, Uttar Pradesh 201301
Mobile No. :- 096671 34400
Mail Id :- sales@techugo.com
Website :- https://www.techugo.com/
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