What is a non-custodial wallet?

Last updated on May 5, 2022

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.

 
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Start you journey with multi-chain staking on the most simple and versatile self-custodial wallet today: iOS, Android
 

 
This web page (including the articles contained herein), is for informational purposes only. Please do not construe any such information or other material contained on this web page as legal, tax, investment, financial, or other advice. This web page and the information contained herein is not a recommendation or endorsement of any digital asset, protocol, network, or project. However, Steakwallet (including its affiliates and/or employees) may have, or may in the future have, a significant financial interest in, and may receive compensation for services related to, one or more of the digital assets, protocols, networks, entities, projects, and/or ventures discussed herein.
The risk of loss in cryptocurrency, including staking, can be substantial and nothing herein is intended to be a guarantee against the possibility of loss. This web page and the content contained herein are based on information which is believed to be reliable and has been obtained from sources believed to be reliable, but steakwallet makes no representation or warranty, express or implied, as to the fairness, accuracy, adequacy, reasonableness, or completeness of such information. Steakwallet cannot be responsible, in any way whatsoever, for your use of the information contained in or linked from this web page. Do not rely upon any information found on blog.steakwallet.fi or support.steakwallet.fi without independent verification.
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