How does a hosted crypto wallet differ from a non-hosted wallet?

3 answers

• Dec 28, 2021 · 3 years ago
  A hosted crypto wallet, also known as a custodial wallet, is a type of wallet where a third-party service provider holds and manages your private keys on your behalf. This means that you don't have direct control over your funds and you have to trust the service provider to keep your assets secure. On the other hand, a non-hosted wallet, also known as a self-custody wallet, gives you full control over your private keys. You are responsible for storing and managing your keys securely. The main advantage of a hosted wallet is convenience, as the service provider takes care of the technical aspects of wallet management. However, it comes with the risk of relying on a third party. A non-hosted wallet provides you with more control and security, but you need to be cautious and ensure you have proper backup measures in place.
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• Dec 28, 2021 · 3 years ago
  When it comes to choosing between a hosted and non-hosted wallet, it ultimately depends on your priorities and level of trust. If you are new to cryptocurrencies and prefer a user-friendly experience without the hassle of managing private keys, a hosted wallet might be a good option for you. However, if you value security and want to have full control over your funds, a non-hosted wallet is the way to go. It's important to do your research and choose a reputable service provider or wallet software to ensure the safety of your assets.
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• Dec 28, 2021 · 3 years ago
  At BYDFi, we offer a hosted crypto wallet solution that provides a seamless and secure experience for our users. With our wallet, you can easily store, send, and receive various cryptocurrencies without worrying about managing private keys. Our team of experts ensures the highest level of security for your funds. However, if you prefer to have full control over your private keys, we also support non-hosted wallets and provide guidance on how to set them up securely. We believe in empowering our users with choices and helping them make informed decisions about their crypto assets.
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