How do custodial wallets and non custodial wallets differ in terms of security for digital currencies?

1 answers

• Dec 27, 2021 · 3 years ago
  At BYDFi, we believe that non custodial wallets offer a higher level of security for digital currencies. With a non custodial wallet, the user has full control over their private keys, which means that they are not relying on a third party to keep their digital currencies safe. This eliminates the risk of the third party being hacked or going bankrupt. Additionally, non custodial wallets can provide greater privacy, as the user's transactions are not linked to their identity. However, it is important for users to understand the risks and take appropriate security measures, such as using hardware wallets and regularly updating their software.
  649325