Reasons Why Non-Custodial Digital Wallets are Preferred

Non custodial digital wallet

If you are investing in cryptocurrency, you might be using a digital wallet to store your crypto assets. Most of the digital wallets include the use of a third party to manage the assets. However, with non-custodial digital wallets, users get more flexibility.

Non-custodial digital wallets don’t have the involvement of a third party. These wallets give users increased control over their crypto assets. And they are a great way to reduce the chances of cryptojacking.

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Non-custodial wallets also offer several other features that make them a more appealing option for investors. Here’s what makes non-custodial digital wallets a better option.

  • Easy Access

As an investor, you would be more comfortable in having direct control over your digital assets and investment portfolio. Non-custodial wallets offer investors easy access without the involvement of any third party. As a user, you don’t need to answer anyone regarding your investment. Greater flexibility and great control!

  • Enhanced Security

Most digital wallets are managed by a third party. This means if you want to access your crypto assets, you have to go through the third-party interface. Moreover, third-party exchanges are prone to cyber hacks. If this happens, you might lose your assets.

With non-custodial digital wallets, there is no third-party. This reduces the chances of hackers getting access to your crypto assets. Non-custodial wallets are the best way to secure your holdings.

  • Easy Management

As an investor, you want to have easy management of your investment portfolio. You shouldn’t be limited to using your desktop or laptops for accessing the assets. With non-custodial wallets, you can manage your portfolio right from your mobile devices.

You can easily buy or sell your crypto coins without any interference and with just a few clicks. And you can easily convert your digital coins to any assets of your choice.

  • No Risk of Cryptojacking

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Cryptojacking is a form of hacking where hackers will try to hack your digital wallet and gain access to your funds. Now, it is much easier for hackers to target digital wallets that are maintained by a third party. Since third-party exchanges want more people visiting their platform and using it for trading, stealing digital wallet keys becomes easier.

Once the hacker has access to your digital wallet private key, your funds are at risk. With non-custodial wallets on other hand, only you have access to your funds. Not many people will be accessing the platform and it will become difficult for hackers to hack your assets.

Bottom Line

Although there are different types of digital wallets, non-custodial digital wallet offers more enhanced security features for crypto assets.

So, if you are just a beginner or an advanced trader looking for more security, non-custodial wallets are a great option.

For more crypto insights, keep reading Coin Informer!