A non-custodial wallet stores crypto funds and gives users full and exclusive access to their assets. Non-custodial wallets eliminate external entities from having access to users’ funds because private keys are stored locally on their device. Non-custodial wallets like Steakwallet require users to have a 12-word recovery phrase, allowing them to manage their assets.
Typically, many cryptocurrency buyers purchase their tokens through a brokerage platform like Coinbase and let the platform store their assets for them, which gives the platforms control over their tokens. Custodial wallets require users to prove their identity to the platform, similar to what banks do when customers open a bank account.
On the other hand, self-custodial wallets dismiss personal identity validation. Users only need a 12-word or 14-word secret phrase to access their funds. Thus, it is very important that users keep their secret phrase secure.
Protection of wealth is one of the cornerstone beliefs behind the adoption of cryptocurrencies. As crypto investors saw the ability to restrict access to their funds to only themselves and not third-party entities with separate agendas (like banks and governments), hodlers became avid supporters of non-custodial wallets as opposed to custodial ones. This culture also gave birth to the famous saying: “Not your keys, not your coins”.
As a self-custodial wallet, Steakwallet affirms the basic tenet of cryptocurrencies as self-manageable assets. In addition, we allow users to move their wallets by enabling import of other self-custodial wallets like Metamask, Keplr and Phantom to our app.
Essentially, non-custodial wallets relieve investors’ need to trust external custodians by providing users with full custody of their assets.
Learn more about non-custodial wallets and keeping your wallet secure.