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mynameislesha | 03 Feb 2020 - 16:58:30 |
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Blockchain wallets are also subdivided into custodial and non-custodial. And the difference between the two is tremendous. A custodial wallet is a Blockchain wallet that does not give users access to the private key. Instead, the private key is stored on its servers. The main benefit of such crypto wallet is the ability to easily restore access to a Bitcoin account in case the password to it was stolen. The main drawback of custodial wallets is its vulnerability to hacker attacks, which happen quite often lately. You do not have full access to your funds, and they can even be frozen when the protection system spots any suspicious actions. As opposed to custodial wallets, non-custodial ones give you full access over your funds as they do not rely on servers. The main weakness of such wallets is the inability to restore access to your account in cases when you no longer have access to your private key. For example, if your computer has broken or you have lost your smartphone, you would be able to access your account only with a seed phrase which is given to users during the set-up process – considering the seed phrase was not stored on the same device. Jaxx, Trustee, and Copay are the best Bitcoin wallets which belong to non-custodial blockchain wallets. |
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