Chapter 4: Crypto Wallets

What are Non-Custodial Crypto Wallets?

Interesting Fact:

Did you know crypto wallets store your private keys instead of storing the actual assets?

easy

10 minutes

In this section, we’re going to explore what are non-custodial crypto wallets!

If you’ve spent even a day researching cryptocurrencies, there’s a pretty good chance that you’ve run into the concept of a crypto wallet - a place where you are able to store your crypto assets, for safekeeping and convenience purposes. Indeed, if you plan to hold even a sliver of cryptocurrency of any kind, a wallet will be mandatory!

That being said, did you know, though, that not all cryptocurrency wallets are the same? And I’m not only talking about their type or visual appearance - I’m referring to custodial and non-custodial wallets.

In this section, we’re going to talk about non-custodial wallets. Specifically, I’ll tell you what non-custodial wallets are, how they differ from custodial ones, and I’ll also give you some examples, too.

Without further ado, let’s get to it!

Non-custodial Wallet: Why Do You Need It Right NOW

Video Explainer

Video Explainer: What are Non-Custodial Crypto Wallets?

Reading is not your thing? Watch the "What are Non-Custodial Crypto Wallets?" video explainer

Two Types of Cryptocurrency Wallets

So - to start things off, before we can figure out what are non-custodial wallets, let’s first explore what does the term “non-custodial” mean.

Well, this term has a pretty wide variety of applications. In the world of crypto, though, “non-custodial” references the privacy and security of your crypto assets.

“Custodial” VS “non-custodial” are terms used to describe cryptocurrency wallets - essentially, you can view them as the two big types of wallets you’ll come across. Custodial wallets are those that can be accessed by a third party (namely, it’s usually the creators of the wallet), while with non-custodial wallets, the holder of the wallet is the only person who will be able to access it, at any point in time.

So, you can think about it this way - imagine that you have a physical wallet, where you keep your money, ID, and other important documents. YOU are the holder of that wallet, and all of its contents - whatever it may be - belongs to you.

Non-custodial wallet: An example with a wallet.

Now, imagine that the creators of your physical wallet - the company that made it - would be able to have access to it, at any point in time. Whether you’re walking down the street to your friend’s house, or shopping at a mall, or even sleeping in your bed at night, your wallet could be “checked” by that company, whenever.

Sounds horrible, doesn’t it? Well, yes, it does - that’s the whole point!

Non-custodial wallets have become the standard in the industry - while there are certain arguments for why you would choose a custodial wallet over a non-custodial one, and we’ll cover those arguments in a minute, they are generally seen as being pretty weak and lacklustre.

An Example of a Non-Custodial Wallet

Before we get to discussing the benefits and drawbacks of non-custodial cryptocurrency wallets, I want to give you an example of what I’m talking about, so that you could have some sort of a mental image to relate to, as we move on with the explanations!

As I’ve mentioned earlier, non-custodial wallets have become the standard - it’s one of the core features that crypto fans look for, when picking out the best wallet for themselves. A great example of what I’m talking about would be a wallet called Ambire - one that is often mentioned, when talking about the best non-custodial wallets.

What is the Ambire Wallet? Well, Ambire is an application that allows you to store, send, and receive various cryptocurrencies, with ease. Now, the term “application” might not be entirely correct here - while Ambire is a web app, it works on your browser, and you would use it as a website.

So, the way that you can look at it is this - when you’re using, say, Facebook on your computer, you go to the official website of the platform, log in to your profile, and take it from there. The exact same is true with the Ambire Wallet - you don’t need to download or install anything, which is great!

The wallet prides itself on a few different things, but the fact that it’s a non-custodial way to store your crypto is definitely among the most important ones. Ambire is also open-source, which only adds to the transparency of the platform - anyone can come in and check the code behind it!

Ambire also has a load of additional features to offer, to everyone from industry newcomers, all the way to crypto veterans. The wallet has a built-in swapping and trading tool, that will allow you to purchase cryptocurrencies from within the wallet, eliminating the need to go to a designated exchange.

Think about it this way - say, your significant other has sent you to the shop, to purchase some flowers and bread. Instead of going to two different stores, you could just go to the shopping mall, purchase both the flowers and the bread there, and save yourself the extra trip.

With Ambire, you don’t need to register on a dedicated cryptocurrency exchange, fund your account, purchase crypto, and then send it to the wallet - everything can be done from the wallet interface itself! Now, there are different pros and cons associated with this, but the fact that you have the ability to do so is still a huge benefit!

Following that, Ambire also offers users cross-chain token swaps, yield earning opportunities, hardware wallet support, Ambire Wallet token airdrops, and many additional benefits. Now, if all of those terms sound completely alien to you, don’t stress - they’re some of the more-difficult crypto topics to wrap your head around! Check out other sections or the glossary of the Crypto 101 Handbook to find more information about these terms.

I’ve chosen Ambire as my non-custodial wallet example due to the fact of just how simple the feature is to understand, with this particular product. Once you create your wallet, you will be asked to download your backup file - you’re the only one who will have access to it, and thus, no one else will be able to take your crypto funds away from you (unless you get hacked or scammed, that is!).

Custodial VS Non-Custodial Wallets: Pros and Cons

Now that you have an example of a non-custodial wallet, let’s move on and talk about the actual, specific benefits that you may expect to receive, while using Ambire, and other non-custodial wallets.

First and foremost, security is probably the biggest concern that anyone looking for a cryptocurrency wallet should have. When you’re using a custodial service, there are multiple points of failure - since your data is stored with the company behind the wallet, if a hack were to occur, your information could be compromised!

Think of it as driving - if you’re using a non-custodial wallet, you’re basically behind the steering wheel. Whatever happens, you will be able to react accordingly, and won’t need to put your fate into the hands of some other driver, while you’re sitting in the passenger seat. The latter scenario would be equivalent to a custodial wallet service.

Fund access is another big point to consider, too. Usually, with a non-custodial wallet (such as Ambire), you are able to access your crypto without having to connect to the internet, while with a custodial wallet service, you would need to log in to your account, and be connected to the platform where the wallet is based.

Non-custodial wallet: Custodial VS Non-custodial wallets.

Lastly, while this does have to do with security, it’s something that I feel like I need to mention, separately. If you were to use Ambire, or another non-custodial wallet, you would be the single owner of your secret wallet key (or a backup, depending on the wallet in question). Custodial wallets do not allow you to own that private key - instead, it is kept with the wallet’s creators.

Now, the argument that people have FOR custodial wallets is that they save you a lot of hassle - you can expect frequent updates, a smooth user experience, and other, similar features. While that is often true, especially with high-profile wallet brands, these days, non-custodial wallets can often offer a similar, if not the same level of user experience!

How to Register on Ambire?

Now that you’re aware of what are non-custodial wallets, let's circle back to the Ambire Wallet - specifically, since I’ve already told you that it’s a good example of a non-custodial wallet, I’d like to explain how you can start using the non-custodial Ambire Wallet, too! Worry not - the process is very beginner-friendly.

First, you’ll need to go to Ambire’s official website - it’s www.ambire.com. Always double-check if you’ve entered the right address into your search bar, since scammers can create look-a-like websites to try and steal your cryptocurrency!

You can take your time and look around, and, once you’re ready to register, simply click on the “GO TO WALLET” button on the header of the page. Here, you can either create a new account, or add an already-existing wallet.

If you’re an experienced crypto enthusiast, you can choose one of these options. However, I’ll assume that you’re just starting out, so, let’s create a brand new account - enter your email address, and think of a strong password. Birth dates and pet names won’t cut it, so don’t even think about it!

Now, as you can see, Ambire asks for a few permissions. First, you’ll need to confirm your email address, and after you do that, the wallet will also ask you to enable browser notifications, as well as permission to access your clipboard. Don't worry, though - all of these permissions are needed solely for the proper functioning of the wallet.

Lastly, here is the most specific step when it comes to non-custodial wallets - before you can start using, for example, the Ambire Wallet, you will need to download your backup, which you would use to recover a lost wallet account. This is probably the most important part for this type of wallets.

With all of that being done, you’re in - welcome to your Ambire Wallet dashboard! On the left side panel, you can see all of the essential sections that might be useful in your crypto journey. At the top of the page, you can change your network, and view your wallet address, too.

Ending Thoughts

Wrapping things up, I hope that you now know what non-custodial wallets are, what is the Ambire Wallet, and why such wallets are the preferred method of cryptocurrency storage. If you value security, and the privacy of your personal information, this type of wallets is definitely the way to go, and the Ambire Wallet is probably a good place to start.

crypto wallet<\/strong><\/a>”, or actually a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hot-wallet/">HOT crypto wallet<\/strong><\/a>!<\/p>\n<p>Why “hot”, though?<\/p>\n<p>Simply, in crypto, all <strong>software-based wallets <\/strong>are called “hot wallets”, and as an opposite, all electronic hardware-based wallets are called “<a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cold-wallet/">cold wallets<\/strong><\/a>”.<\/p>\n<p>So, first and foremost, the MetaMask app is a software wallet!<\/p>\n<p><img title=\"What is MetaMask: Cold and Hot crypto wallets.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-1.o.jpg/" alt=\"What is MetaMask: Cold and Hot crypto wallets.\" width=\"800\" height=\"532\" \/><\/p>\n<p>Let’s break the concept of a crypto wallet down.<\/p>\n<p>A cryptocurrency wallet is a digital equivalent of your physical wallet. Just as you hold your real money in your physical wallet, cryptocurrency wallets hold your digital coins - cryptocurrencies such as <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin, <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum, and many more.<\/p>\n<p>Some wallets can only hold one coin, and are thus “dedicated”. For example, a Bitcoin-dedicated wallet would only be able to hold BTC coins. <strong>Others have the ability to hold multiple crypto coins - it depends!<\/strong><\/p>\n<p>MetaMask, however, is <strong>a dedicated wallet<\/strong> - it only allows you to hold everything that is related to the Ethereum blockchain: <strong>Ethereum coins, and any other ETH-based tokens<\/strong>. Check out the section called \"<a href=https://www.bitdegree.org/"//crypto//learn//coin-vs-token/">Coins VS Tokens<\/strong><\/a>\" to understand the differences and how they are related.<\/p>\n<p>But shortly, cryptocurrency tokens are projects built on the blockchain of a specific coin - in this case, Ethereum. It’s a bit more complex and technical than that, but that's the premise. But what you should clearly understand is that you can’t store your Bitcoins on Metamask, but <strong>you can store any token that is built on the Ethereum blockchain<\/strong>, for example, <strong>Tether, Shiba Inu, Axie Infinity, and similar<\/strong>.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is MetaMask: What is MetaMask?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-2.o.jpg/" alt=\"What is MetaMask: What is MetaMask?\" width=\"801\" height=\"606\" \/><\/p>\n<p>Here is an example: imagine that you’ve decided to go and wash your car. You approach a car washing station and have to insert coins in order for the machines to start working. However, the car wash only accepts US dollar coins, and any other foreign currencies, like Euros or Pounds Sterling get rejected!<\/p>\n<p>The same logic applies to MetaMask - it only accepts Ethereum, and tokens that are built on the Ethereum blockchain.<\/p>\n<p>What about the “hot” wallet part, though - how is it HOT, in the first place?<\/p>\n<p>In the cryptocurrency world, “hot” wallets are those that <strong>maintain a constant connection to the internet<\/strong>. This means that, in order to use MetaMask, you will need to always be connected to the internet, and have access to the browser (or device) that the wallet is installed on. Yes, <strong>MetaMask acts both as a browser extension, and a mobile app.<\/strong><\/p>\n<p>Specifically, in the same manner, as how you would add apps such as Grammarly or adBlock to your browser, as a web extension, MetaMask will need to be added, as well. Or it can be downloaded from either the Android or the iOS stores.<\/p>\n<p>So - it’s clear that MetaMask is primarily used as an Ethereum wallet. However, as you might have heard, it’s actually considered to be the most popular ETH wallet out there, in general! MetaMask has managed to achieve this by offering its users ease of use.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is MetaMask: What is a \" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-3.o.jpg/" alt=\"What is MetaMask: What is a \" width=\"1031\" height=\"773\" \/><\/p>\n<p>To be more specific, MetaMask allows you to perform cryptocurrency transactions (Ethereum payments or transfers) in a super-simple manner.<strong> You can even buy crypto tokens from an integrated third party, without leaving your MetaMask wallet, with the company taking a small cut as a transaction fee <\/strong>(this is how MetaMask makes money, too)!<\/p>\n<p>Think of the earlier-discussed PayPal example - now, imagine PayPal integrated into your browser!<\/p>\n<p>No matter where you go online, if you’d like to purchase something, all that you’d need to do is enter your password, and that’s it - you'll be able to pay for your order in a matter of seconds! MetaMask works in a similar manner - integrated into your browser, it allows you <strong>to access your Ethereum or ETH tokens in just a few clicks<\/strong>. You can also pay, send, or exchange ETH with anyone you’d like.<\/p>\n<h2>Is MetaMask Safe?<\/h2>\n<p>So - MetaMask is very convenient to use, as a cryptocurrency wallet. We’ve established that much already! However, naturally, you might question - <strong>is it reliable and safe to use, in the first place?<\/strong><\/p>\n<p>The short answer is <strong>YES,<\/strong> it is. Let’s expand on it, though, shall we?<\/p>\n<p>MetaMask provides <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-encryption/">encryption and security technology and <strong>acts as the middleman between the user, and the service that they are accessing<\/strong>. In other words, MetaMask can be seen as the bridge between two parties - a bridge that’s full of security patrols, cameras, and guard posts.<\/p>\n<p>Before we continue, I urge you to, once again, think about the <strong>PayPal<\/strong> example we’ve used a couple of times in this section already. PayPal encrypts your data, and protects all of your financial information - <strong>your money is only sent to those shops and service providers that you approve, manually<\/strong>.<\/p>\n<p>In essence, MetaMask is the same. As a wallet, it protects your funds but still allows you to access them in a quick and effortless manner, when you need to.<\/p>\n<p>All of that being said, I do have to point out that, all things considered, it IS a hot wallet - one that maintains a constant connection to the internet. <strong>In turn, this does open up doors for vulnerabilities.<\/strong><\/p>\n<p>Being connected to the web all the time, hot wallets are more prone to break-ins and hacking attempts, as opposed to cold wallets, or <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hardware-wallet/">hardware devices. These are special devices that usually look like a USB drive, but are designated for storing and keeping your cryptocurrencies safe, offline.<\/p>\n<p>Hot wallets, in general, aren’t the safest choice, when it comes to storing cryptocurrencies. However, they are very convenient, and<strong> require less time and effort to use, when compared to hardware devices<\/strong>!<\/p>\n<p style=\"text-align: center;\"><img title=\"What is MetaMask: types of wallets.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-5.o.jpg/" alt=\"What is MetaMask: types of wallets.\" width=\"800\" height=\"401\" \/><\/p>\n<p>An example that you can imagine is that of a car. Cars can be dangerous - something can go wrong with the engine, or you might get a flat tire mid-journey, and swirl into a ditch. On top of that, you always need to keep an eye on other drivers on the road, lest they would decide to drive into you.<\/p>\n<p>That said, many people choose to drive cars, nonetheless. This is because the risk level is rather mediocre, especially if you take all of the active precautions beforehand - don’t go over the speed limit, wear your seatbelt, and so on.<\/p>\n<p>The same can be said about hot wallets such as MetaMask, too. <strong>If you don’t visit shady websites or press suspicious links, and avoid any potential scams or strange individuals offering to double your crypto if you send it to them, you will minimize the risks, too!<\/strong><\/p>\n<h2>How to Use MetaMask?<\/h2>\n<p>Up to this point, we’ve covered what is MetaMask, and the question of whether or not it’s safe to use. Now, let’s take a look at how you can actually start using the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//tutorials//cryptocurrency-wallet/">cryptocurrency wallet<\/strong><\/a> in question!<\/p>\n<p>Since simplicity is key with MetaMask, installing the wallet isn’t a difficult process, either. Just <strong>3 steps<\/strong> and you’re done!<\/p>\n<p>All that you need to do is go to <strong>MetaMask.io<\/strong>, the official website. By the way, don’t fall for other scammy websites impersonating the real MetaMask wallet, and always check the URL in your browser for any possible spelling errors while visiting their website! It is kind of a usual fraudster’s practice, to fake an official domain, so be aware!<\/p>\n<p>So next, depending on the device that you might be using, you will be able to download the official Metamask wallet <strong>as a browser extension<\/strong>, or as an app for Android or iOS mobile devices.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is MetaMask: How to use MetaMask?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-6.o.jpg/" alt=\"What is MetaMask: How to use MetaMask?\" width=\"800\" height=\"650\" \/><\/p>\n<p>Once it’s installed, you’ll need to set up the wallet itself. While setting up, the most important part is <strong>the recovery phrase<\/strong>! Save it securely when prompted. I just want to emphasize here that the recovery phrase is the only tool that you’ll have in order to get your crypto funds back if you lose access to your wallet (for example, your computer gets damaged, or you lose your phone). Never ever share it with anybody for any reason!<\/p>\n<p><strong>Once all of that is done, that’s it - you can start sending and receiving Ethereum and its tokens from and to your MetaMask account!<\/strong><\/p>\n<p>One handy feature is that MetaMask also allows you to create multiple wallet accounts within the same app, if you so wish to, and even connect your hardware wallet to one of those accounts, for extra added security. This is like taking a safe full of money, and concreting it underground - <strong>it will increase the safety and security of your assets exponentially!<\/strong><\/p>\n<p style=\"text-align: center;\"><strong><img title=\"What is MetaMask: Recap.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-7.o.jpg/" alt=\"What is MetaMask: Recap.\" width=\"800\" height=\"458\" \/><\/strong><\/p>\n<p>So, in this section, we’ve covered what MetaMask is, whether or not it’s a safe wallet to use, and how you can start using it, yourself. Being one of the most popular Ethereum wallets out there, it’s definitely worth learning about the platform, even if you don’t plan on using it, personally. And finally, I really encourage you <strong>just to go and try it yourself<\/strong>, it costs nothing and will take you a minute. But overall you’ll learn through experiencing it yourself!<\/p>\n<p>That being said, I hope this section was helpful to you and you can also check out another topic such as \"<a href=https://www.bitdegree.org/"//crypto//learn//what-are-smart-contracts/">What are Smart Contracts<\/strong><\/a>?\".<\/p>","definition":"Did you know that, according to Bloomberg, MetaMask's browser extension had over 21 million active users, as of November 2021?","status":"published","meta_title":"What is MetaMask: Is it Reliable and Safe to Use?","meta_description":"In this section, you'll find out what is MetaMask & what is a MetaMask wallet. There is also a step-by-step guide on how to use MetaMask!","meta_keywords":"What is Metamask, What is Metamask Wallet, Meta Mask, How to use Metamask,","modified_content":"<p>In this section, I’m going to explain what MetaMask is!<\/p>\n<p><strong>MetaMask is arguably one of the best quality-of-life innovations in online shopping is automated checkouts. <\/strong>You simply enter your PayPal or debit card information once, and the next time you purchase something from the website, all you need to do is click one button, and all of the money transaction processes happen for you.<\/p>\n<p>Essentially, this is how MetaMask functions in the cryptocurrency world, as well.<\/p>\n<p>In this section, we’re going to check out what is MetaMask. We’ll also answer questions such as “<strong>is MetaMask safe?<\/strong>”, and how you can use this crypto software platform in your daily life.<\/p>\n<p>Let’s get right to it, shall we?<\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"What is a MetaMask Wallet? (And How to Use it - Animated)\"\n title=\"What is a MetaMask Wallet? (And How to Use it - Animated)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Metamask: The Leading Non-Custodial Wallet<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Metamask: The Leading Non-Custodial Wallet\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"6vGE446Fjvg\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">What is a MetaMask Wallet? (And How to Use it - Animated)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-a-metamask-wallet-and-how-to-use-it-animated.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-a-metamask-wallet-and-how-to-use-it-animated.jpg?tr=w-760 1000w\"\n alt=\"What is a MetaMask Wallet? (And How to Use it - Animated)\"\n title=\"What is a MetaMask Wallet? (And How to Use it - Animated)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"What is a MetaMask Wallet? (And How to Use it - Animated)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What is MetaMask?<\/h2>\n<p>First things first - what is MetaMask?<\/p>\n<p>Well, MetaMask is an internet app that serves a few different purposes. The primary (and most well-known) purpose is <strong>cryptocurrency storage<\/strong> - in other words, MetaMask is a “<a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//best-cryptocurrency-wallet/">crypto wallet<\/strong><\/a>”, or actually a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hot-wallet/">HOT crypto wallet<\/strong><\/a>!<\/p>\n<p>Why “hot”, though?<\/p>\n<p>Simply, in crypto, all <strong>software-based wallets <\/strong>are called “hot wallets”, and as an opposite, all electronic hardware-based wallets are called “<a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cold-wallet/">cold wallets<\/strong><\/a>”.<\/p>\n<p>So, first and foremost, the MetaMask app is a software wallet!<\/p>\n<p><img title=\"What is MetaMask: Cold and Hot crypto wallets.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-1.o.jpg/" alt=\"What is MetaMask: Cold and Hot crypto wallets.\" width=\"800\" height=\"532\" \/><\/p>\n<p>Let’s break the concept of a crypto wallet down.<\/p>\n<p>A cryptocurrency wallet is a digital equivalent of your physical wallet. Just as you hold your real money in your physical wallet, cryptocurrency wallets hold your digital coins - cryptocurrencies such as <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin, <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum, and many more.<\/p>\n<p>Some wallets can only hold one coin, and are thus “dedicated”. For example, a Bitcoin-dedicated wallet would only be able to hold BTC coins. <strong>Others have the ability to hold multiple crypto coins - it depends!<\/strong><\/p>\n<p>MetaMask, however, is <strong>a dedicated wallet<\/strong> - it only allows you to hold everything that is related to the Ethereum blockchain: <strong>Ethereum coins, and any other ETH-based tokens<\/strong>. Check out the section called \"<a href=https://www.bitdegree.org/"//crypto//learn//coin-vs-token/">Coins VS Tokens<\/strong><\/a>\" to understand the differences and how they are related.<\/p>\n<p>But shortly, cryptocurrency tokens are projects built on the blockchain of a specific coin - in this case, Ethereum. It’s a bit more complex and technical than that, but that's the premise. But what you should clearly understand is that you can’t store your Bitcoins on Metamask, but <strong>you can store any token that is built on the Ethereum blockchain<\/strong>, for example, <strong>Tether, Shiba Inu, Axie Infinity, and similar<\/strong>.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is MetaMask: What is MetaMask?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-2.o.jpg/" alt=\"What is MetaMask: What is MetaMask?\" width=\"801\" height=\"606\" \/><\/p>\n<p>Here is an example: imagine that you’ve decided to go and wash your car. You approach a car washing station and have to insert coins in order for the machines to start working. However, the car wash only accepts US dollar coins, and any other foreign currencies, like Euros or Pounds Sterling get rejected!<\/p>\n<p>The same logic applies to MetaMask - it only accepts Ethereum, and tokens that are built on the Ethereum blockchain.<\/p>\n<p>What about the “hot” wallet part, though - how is it HOT, in the first place?<\/p>\n<p>In the cryptocurrency world, “hot” wallets are those that <strong>maintain a constant connection to the internet<\/strong>. This means that, in order to use MetaMask, you will need to always be connected to the internet, and have access to the browser (or device) that the wallet is installed on. Yes, <strong>MetaMask acts both as a browser extension, and a mobile app.<\/strong><\/p>\n<p>Specifically, in the same manner, as how you would add apps such as Grammarly or adBlock to your browser, as a web extension, MetaMask will need to be added, as well. Or it can be downloaded from either the Android or the iOS stores.<\/p>\n<p>So - it’s clear that MetaMask is primarily used as an Ethereum wallet. However, as you might have heard, it’s actually considered to be the most popular ETH wallet out there, in general! MetaMask has managed to achieve this by offering its users ease of use.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is MetaMask: What is a \" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-3.o.jpg/" alt=\"What is MetaMask: What is a \" width=\"1031\" height=\"773\" \/><\/p>\n<p>To be more specific, MetaMask allows you to perform cryptocurrency transactions (Ethereum payments or transfers) in a super-simple manner.<strong> You can even buy crypto tokens from an integrated third party, without leaving your MetaMask wallet, with the company taking a small cut as a transaction fee <\/strong>(this is how MetaMask makes money, too)!<\/p>\n<p>Think of the earlier-discussed PayPal example - now, imagine PayPal integrated into your browser!<\/p>\n<p>No matter where you go online, if you’d like to purchase something, all that you’d need to do is enter your password, and that’s it - you'll be able to pay for your order in a matter of seconds! MetaMask works in a similar manner - integrated into your browser, it allows you <strong>to access your Ethereum or ETH tokens in just a few clicks<\/strong>. You can also pay, send, or exchange ETH with anyone you’d like.<\/p>\n<h2>Is MetaMask Safe?<\/h2>\n<p>So - MetaMask is very convenient to use, as a cryptocurrency wallet. We’ve established that much already! However, naturally, you might question - <strong>is it reliable and safe to use, in the first place?<\/strong><\/p>\n<p>The short answer is <strong>YES,<\/strong> it is. Let’s expand on it, though, shall we?<\/p>\n<p>MetaMask provides <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-encryption/">encryption and security technology and <strong>acts as the middleman between the user, and the service that they are accessing<\/strong>. In other words, MetaMask can be seen as the bridge between two parties - a bridge that’s full of security patrols, cameras, and guard posts.<\/p>\n<p>Before we continue, I urge you to, once again, think about the <strong>PayPal<\/strong> example we’ve used a couple of times in this section already. PayPal encrypts your data, and protects all of your financial information - <strong>your money is only sent to those shops and service providers that you approve, manually<\/strong>.<\/p>\n<p>In essence, MetaMask is the same. As a wallet, it protects your funds but still allows you to access them in a quick and effortless manner, when you need to.<\/p>\n<p>All of that being said, I do have to point out that, all things considered, it IS a hot wallet - one that maintains a constant connection to the internet. <strong>In turn, this does open up doors for vulnerabilities.<\/strong><\/p>\n<p>Being connected to the web all the time, hot wallets are more prone to break-ins and hacking attempts, as opposed to cold wallets, or <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hardware-wallet/">hardware devices. These are special devices that usually look like a USB drive, but are designated for storing and keeping your cryptocurrencies safe, offline.<\/p>\n<p>Hot wallets, in general, aren’t the safest choice, when it comes to storing cryptocurrencies. However, they are very convenient, and<strong> require less time and effort to use, when compared to hardware devices<\/strong>!<\/p>\n<p style=\"text-align: center;\"><img title=\"What is MetaMask: types of wallets.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-5.o.jpg/" alt=\"What is MetaMask: types of wallets.\" width=\"800\" height=\"401\" \/><\/p>\n<p>An example that you can imagine is that of a car. Cars can be dangerous - something can go wrong with the engine, or you might get a flat tire mid-journey, and swirl into a ditch. On top of that, you always need to keep an eye on other drivers on the road, lest they would decide to drive into you.<\/p>\n<p>That said, many people choose to drive cars, nonetheless. This is because the risk level is rather mediocre, especially if you take all of the active precautions beforehand - don’t go over the speed limit, wear your seatbelt, and so on.<\/p>\n<p>The same can be said about hot wallets such as MetaMask, too. <strong>If you don’t visit shady websites or press suspicious links, and avoid any potential scams or strange individuals offering to double your crypto if you send it to them, you will minimize the risks, too!<\/strong><\/p>\n<h2>How to Use MetaMask?<\/h2>\n<p>Up to this point, we’ve covered what is MetaMask, and the question of whether or not it’s safe to use. Now, let’s take a look at how you can actually start using the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//tutorials//cryptocurrency-wallet/">cryptocurrency wallet<\/strong><\/a> in question!<\/p>\n<p>Since simplicity is key with MetaMask, installing the wallet isn’t a difficult process, either. Just <strong>3 steps<\/strong> and you’re done!<\/p>\n<p>All that you need to do is go to <strong>MetaMask.io<\/strong>, the official website. By the way, don’t fall for other scammy websites impersonating the real MetaMask wallet, and always check the URL in your browser for any possible spelling errors while visiting their website! It is kind of a usual fraudster’s practice, to fake an official domain, so be aware!<\/p>\n<p>So next, depending on the device that you might be using, you will be able to download the official Metamask wallet <strong>as a browser extension<\/strong>, or as an app for Android or iOS mobile devices.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is MetaMask: How to use MetaMask?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-6.o.jpg/" alt=\"What is MetaMask: How to use MetaMask?\" width=\"800\" height=\"650\" \/><\/p>\n<p>Once it’s installed, you’ll need to set up the wallet itself. While setting up, the most important part is <strong>the recovery phrase<\/strong>! Save it securely when prompted. I just want to emphasize here that the recovery phrase is the only tool that you’ll have in order to get your crypto funds back if you lose access to your wallet (for example, your computer gets damaged, or you lose your phone). Never ever share it with anybody for any reason!<\/p>\n<p><strong>Once all of that is done, that’s it - you can start sending and receiving Ethereum and its tokens from and to your MetaMask account!<\/strong><\/p>\n<p>One handy feature is that MetaMask also allows you to create multiple wallet accounts within the same app, if you so wish to, and even connect your hardware wallet to one of those accounts, for extra added security. This is like taking a safe full of money, and concreting it underground - <strong>it will increase the safety and security of your assets exponentially!<\/strong><\/p>\n<p style=\"text-align: center;\"><strong><img title=\"What is MetaMask: Recap.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-metamask-7.o.jpg/" alt=\"What is MetaMask: Recap.\" width=\"800\" height=\"458\" \/><\/strong><\/p>\n<p>So, in this section, we’ve covered what MetaMask is, whether or not it’s a safe wallet to use, and how you can start using it, yourself. Being one of the most popular Ethereum wallets out there, it’s definitely worth learning about the platform, even if you don’t plan on using it, personally. And finally, I really encourage you <strong>just to go and try it yourself<\/strong>, it costs nothing and will take you a minute. But overall you’ll learn through experiencing it yourself!<\/p>\n<p>That being said, I hope this section was helpful to you and you can also check out another topic such as \"<a href=https://www.bitdegree.org/"//crypto//learn//what-are-smart-contracts/">What are Smart Contracts<\/strong><\/a>?\".<\/p>","youtube_video":{"id":4,"channel_id":1,"sort":88,"video_title":"What is a MetaMask Wallet? (And How to Use it - Animated)","description":"What is MetaMask?\n\nMetaMask is best-known for being a hot cryptocurrency wallet - a digital place to store your crypto assets. It\u2019s one of the most popular Ethereum wallets (it supports Ethereum and ERC tokens), and can be used as either a browser extension, or a mobile app.\n\nThat being said, MetaMask is actually much more than simply a cryptocurrency wallet. The piece of crypto software acts as a bridge between the user, and the service that they might be interacting with. This is exactly what I cover in this video, on top of questions such as what MetaMask is, and how you can use it, on a daily basis.\n\nHave you ever used MetaMask? Share your experiences in the comments below!\n\nVideo Time Table:\n\n0:00 Introduction to What is MetaMask\n0:51 What is MetaMask?\n2:53 What is a Hot Wallet?\n4:33 Is MetaMask Safe?\n6:59 How to Use MetaMask?\n8:27 Wrap-up of What is MetaMask\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#Metamask #WhatisMetaMask #WhatisMetaMaskWallet #HowToUseMetaMask #CryptoWallet #Cryptocurrencies #Crypto #Tokens","video_id":"6vGE446Fjvg","duration":543,"view_count":595,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-a-metamask-wallet-and-how-to-use-it-animated.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2022-02-08T14:48:28.000000Z","created_at":"2022-02-21T13:20:28.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :prev-section="{"id":383,"chapter_id":4,"order":2,"featured_image_id":3077,"youtube_video_id":47,"author_id":1,"created_at":"2022-11-22T06:52:04.000000Z","updated_at":"2023-12-22T06:40:12.000000Z","slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","content":"<p>In this section, we’re going to talk about the differences between hot wallets VS cold wallets!<\/p>\n<p>Crypto wallets are a huge and exciting topic - in the previous section <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-crypto-wallet/">/"What is a Crypto Wallet\"<\/strong><\/a>, I covered only the basic premise of what these wallets are, and how they work. One thing that we did touch on, though, was the <strong>different types of wallets out there<\/strong> - specifically, hot and cold ones.<\/p>\n<p>The debate of hot VS cold crypto storage is neverending - if you’ve spent even a few days on online crypto forums, you might have noticed this already! If you’re new to the space, it can get pretty confusing - that’s what I’m here for, though!<\/p>\n<p>In this section, <strong>we’re going to look into the century-old debate of hot wallets VS cold wallets<\/strong>. I’ll give you a brief introduction of what these two types of wallets are, to begin with, and then we’ll look into the pros and cons of using either of them. In the end, we’ll see if there’s a clear winner to be drawn!<\/p>\n<p><em>Without further ado, let’s get to it!<\/em><\/p>\n<h2>What are Crypto Hot and Cold Wallets?<\/h2>\n<p>Starting from the very beginning, let’s look into the actual concepts of hot and cold cryptocurrency wallets.<\/p>\n<p>A great way to think about it is this: imagine that you and your friend agreed to meet up for coffee. Once you’re done catching up, you then decide to also go take a walk - before doing so, though, you need to pay for the coffee. The barista asks you - will you pay in cash, or via credit or debit card?<\/p>\n<p>Paying in cash would mean that you’d take out your physical wallet, sort through your banknotes and coins, and pay this way. On the flip side, using your debit card, you’d simply swipe it through the machine, and your bank account would be charged that same amount.<\/p>\n<p>Pretty simple, right? Well, hot wallets VS cold wallets aren’t much more difficult concepts to comprehend, either!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: The difference.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_01.jpg/" alt=\"Hot wallet VS Cold wallet: The difference.\" width=\"1000\" height=\"337\" \/><\/p>\n<p><strong>A cryptocurrency hot wallet is a crypto storage solution that maintains a constant, uninterrupted connection to the internet<\/strong>. These wallets are usually programs or pieces of software, but they can also be mobile apps, web browser-based platforms, and so on.<\/p>\n<p>As opposed to that, <strong>cold wallets are either hardware devices, or even simply pieces of paper<\/strong> that have the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-private-key-secret-key/">private and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-public-key/">public keys<\/strong><\/a> written on them. As a quick side note, if you’re not familiar with the concepts of wallet keys, in general, please make sure to read the previous section on crypto wallets, and how they work - this will help you understand the concepts covered in this section much better!<\/p>\n<p>Going back to cold storage, <strong>hardware wallets<\/strong> are the most common type of cold cryptocurrency storage that you’ll encounter. Same as your standard wallet, hardware wallets are actual, physical objects, resembling small USB sticks, or some sort of a miniature digital display. You would usually operate these wallets with either a couple of buttons present on the device, or via a built-in touchscreen.<\/p>\n<p>So, as you can see, both hot wallets VS cold wallets are somewhat similar, in the sense that they both offer crypto storage functionality to their users. This, however, is often where the similarities end, as well - apart from crypto storage, and a few other, smaller features, both wallet types are very different!<\/p>\n<h2>The Pros and Cons of Hot and Cold Wallets<\/h2>\n<p>Now, moving on, in order to understand the constant struggle that many crypto enthusiasts face, when it comes to picking out cold VS hot storage, we need to talk about those <strong>key differences and similarities between hot VS cold crypto wallets<\/strong>. This, in turn, will also reveal their specific pros and cons, as well - you’ll be able to evaluate them, and decide which wallet type suits your needs best!<\/p>\n<p>Starting out, the obvious - <strong>crypto storage<\/strong>. Both hot VS cold wallets allow you to store cryptocurrencies - that’s their primary feature, after all. However, what you might not be aware of is that most hardware wallets will allow you to store hundreds, if not thousands of different coins and tokens!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: Crypto Storage.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_02.jpg/" alt=\"Hot wallet VS Cold wallet: Crypto Storage.\" width=\"1000\" height=\"585\" \/><\/p>\n<p><strong>Hot wallets are a bit more diverse<\/strong>. There are plenty of options for multiple asset storage, that’s true, but there are also many hot wallets that are coin-specific - meaning, you would only be able to store a single, designated crypto asset on the wallet.<\/p>\n<p>Which option is better? Well, for most people, multiple asset storage will be the way to go. However, if you’re only going to hold a single coin or token, or if you’d like to use asset-specific wallets, in general, it’s good to know that such an option exists!<\/p>\n<p>Another thing that both hot VS cold crypto wallets have in common are the <strong>additional services available from the wallet interface<\/strong>. For example, there are many hardware and software cryptocurrency wallets that have built-in crypto acquisition features - you are able to purchase cryptocurrencies straight from the wallet, without going out to an exchange!<\/p>\n<p>As a side note, I do have to say - debating about hot wallets VS cold wallets involves understanding that <strong>buying crypto from within your wallet isn’t the safest thing to do<\/strong>, no matter what type of a wallet it is that you possess. Don’t fret, though - if you’re looking to buy crypto for the very first time, there's a dedicated section in this Crypto 101 Handbook covering the process, step-by-step - <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-buy-crypto/">check it out<\/strong><\/a>!<\/p>\n<p>Going back to the pros and cons of hot and cold crypto wallets, it’s time to address the “BIG” topic - the thing that sparks up the biggest debates among enthusiasts and crypto experts, alike. And that is the question of <strong>security VS convenience<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: Security VS Convenience.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_04.jpg/" alt=\"Hot wallet VS Cold wallet: Security VS Convenience.\" width=\"1000\" height=\"579\" \/><\/p>\n<p>You see, since the dawn of the crypto industry, cryptocurrency wallets were viewed as the ultimate beacon of security - a place where you could store your assets, and not worry that they will get stolen. At least this SHOULD be the case - naturally, it puts wallet projects under a lot of scrutiny!<\/p>\n<p>Following that, <strong>hot wallets have often been considered as the less-secure option<\/strong>, as far as hot and cold wallet comparisons go. This is because the fact that they are always connected to the internet - in theory, it makes them more susceptible to potential security breaches and hacking attempts.<\/p>\n<p>On the flip side, hardware devices are usually disconnected from your computer, and thus, from the internet, in general. This makes reaching your private keys practically impossible, unless someone were to steal your actual wallet, or attack your account while you’re making a transaction.<\/p>\n<p>Think of it like this - imagine that you live in a really densely-populated city, and need to go to work. Your work is on the other side of that city, and you have two options of transportation - either a bike, or a car.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: An example with a car and a bike.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_03.jpg/" alt=\"Hot wallet VS Cold wallet: An example with a car and a bike.\" width=\"1000\" height=\"486\" \/><\/p>\n<p>A bike allows you to pass through traffic much quicker, saving you a lot of time and patience. With a car, you’d be stuck in traffic - however, cars are usually much safer to travel in!<\/p>\n<p>This brings us to another point - <strong>convenience<\/strong>. Many enthusiasts believe that, where hot wallets are lackluster in security, they make up with the fact that they’re super-convenient to use. <strong>Cold wallets, while being very secure, can be a headache to operate<\/strong>, if you plan on transacting with crypto a few times per day or so.<\/p>\n<h2>Which is Better?<\/h2>\n<p>All of that leads us to the final question - <strong>which one should you pick?<\/strong> Or, in other words, comparing a hot wallet VS a cold wallet, which option is better?<\/p>\n<p>Well, let me tell you - you DON'T actually need to pick and choose, in the first place.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: Use both.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_05.jpg/" alt=\"Hot wallet VS Cold wallet: Use both.\" width=\"1000\" height=\"780\" \/><\/p>\n<p>The easiest way to avoid any and all difficult debates and discussions, as well as cold wallet VS hot wallet comparisons, is to <strong>use at least two cryptocurrency wallets<\/strong> - one hot, and one cold. You would then store the bigger part of your <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-portfolio/">portfolio in the hardware wallet <em>(since it’s considered to be the safer alternative)<\/em>, and use the smaller amount for trading and transaction purposes <em>(since it’s more convenient)<\/em>.<\/p>\n<p>Naturally, very generally speaking, <strong>the more wallets you utilize, the better<\/strong>. This will allow you to diversify your risk, and if something were to happen to one of the wallets, you wouldn’t suffer any major losses. But, if you at least choose to use both hardware and software wallets, instead of comparing and contrasting hot VS cold wallets, this is already a move in the right direction!<\/p>\n<p>One last thing that’s worth mentioning is that the cryptocurrency wallet industry is growing and evolving, together with the rest of the space. While the stigma attached to hot wallets not being the most secure crypto storage solution is still alive and common, as time goes on, this is something that’s slowly fading away, as well.<\/p>\n<p>That being said, potential scammers and foul players are keeping up with the times, as well. Make sure to educate yourself about some of the most common crypto scam attempts, and focus on the best hot and cold cryptocurrency wallet practices!<\/p>","definition":"Did you know that a simple piece of paper with codes written on it is considered as a cold crypto wallet?","status":"published","meta_title":"Hot Wallet VS Cold Wallet: What's the Difference?","meta_description":"Hot wallet VS Cold wallet: Which one is better? Well, it depends on your needs. Read this to find out which one is more suitable for you!","meta_keywords":"hot wallet vs cold wallet, cold wallet vs hot wallet, hot vs cold wallet, cold vs hot wallet, hot vs cold storage, hot vs cold wallet crypto, hot and cold wallet cryptocurrency, bitcoin cold wallet vs hot wallet, hot vs cold crypto wallet","modified_content":"<p>In this section, we’re going to talk about the differences between hot wallets VS cold wallets!<\/p>\n<p>Crypto wallets are a huge and exciting topic - in the previous section <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-crypto-wallet/">/"What is a Crypto Wallet\"<\/strong><\/a>, I covered only the basic premise of what these wallets are, and how they work. One thing that we did touch on, though, was the <strong>different types of wallets out there<\/strong> - specifically, hot and cold ones.<\/p>\n<p>The debate of hot VS cold crypto storage is neverending - if you’ve spent even a few days on online crypto forums, you might have noticed this already! If you’re new to the space, it can get pretty confusing - that’s what I’m here for, though!<\/p>\n<p>In this section, <strong>we’re going to look into the century-old debate of hot wallets VS cold wallets<\/strong>. I’ll give you a brief introduction of what these two types of wallets are, to begin with, and then we’ll look into the pros and cons of using either of them. In the end, we’ll see if there’s a clear winner to be drawn!<\/p>\n<p><em>Without further ado, let’s get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"Hot VS Cold Wallet: Which One Do YOU Need? (Animated)\"\n title=\"Hot VS Cold Wallet: Which One Do YOU Need? (Animated)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Hot Wallet VS Cold Wallet: Which One to Pick?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Hot Wallet VS Cold Wallet: Which One to Pick?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"h_n6-AyNv6I\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">Hot VS Cold Wallet: Which One Do YOU Need? (Animated)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/hot-vs-cold-wallet-which-one-do-you-need-animated.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/hot-vs-cold-wallet-which-one-do-you-need-animated.jpg?tr=w-760 1000w\"\n alt=\"Hot VS Cold Wallet: Which One Do YOU Need? (Animated)\"\n title=\"Hot VS Cold Wallet: Which One Do YOU Need? 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(Animated)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What are Crypto Hot and Cold Wallets?<\/h2>\n<p>Starting from the very beginning, let’s look into the actual concepts of hot and cold cryptocurrency wallets.<\/p>\n<p>A great way to think about it is this: imagine that you and your friend agreed to meet up for coffee. Once you’re done catching up, you then decide to also go take a walk - before doing so, though, you need to pay for the coffee. The barista asks you - will you pay in cash, or via credit or debit card?<\/p>\n<p>Paying in cash would mean that you’d take out your physical wallet, sort through your banknotes and coins, and pay this way. On the flip side, using your debit card, you’d simply swipe it through the machine, and your bank account would be charged that same amount.<\/p>\n<p>Pretty simple, right? Well, hot wallets VS cold wallets aren’t much more difficult concepts to comprehend, either!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: The difference.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_01.jpg/" alt=\"Hot wallet VS Cold wallet: The difference.\" width=\"1000\" height=\"337\" \/><\/p>\n<p><strong>A cryptocurrency hot wallet is a crypto storage solution that maintains a constant, uninterrupted connection to the internet<\/strong>. These wallets are usually programs or pieces of software, but they can also be mobile apps, web browser-based platforms, and so on.<\/p>\n<p>As opposed to that, <strong>cold wallets are either hardware devices, or even simply pieces of paper<\/strong> that have the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-private-key-secret-key/">private and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-public-key/">public keys<\/strong><\/a> written on them. As a quick side note, if you’re not familiar with the concepts of wallet keys, in general, please make sure to read the previous section on crypto wallets, and how they work - this will help you understand the concepts covered in this section much better!<\/p>\n<p>Going back to cold storage, <strong>hardware wallets<\/strong> are the most common type of cold cryptocurrency storage that you’ll encounter. Same as your standard wallet, hardware wallets are actual, physical objects, resembling small USB sticks, or some sort of a miniature digital display. You would usually operate these wallets with either a couple of buttons present on the device, or via a built-in touchscreen.<\/p>\n<p>So, as you can see, both hot wallets VS cold wallets are somewhat similar, in the sense that they both offer crypto storage functionality to their users. This, however, is often where the similarities end, as well - apart from crypto storage, and a few other, smaller features, both wallet types are very different!<\/p>\n<h2>The Pros and Cons of Hot and Cold Wallets<\/h2>\n<p>Now, moving on, in order to understand the constant struggle that many crypto enthusiasts face, when it comes to picking out cold VS hot storage, we need to talk about those <strong>key differences and similarities between hot VS cold crypto wallets<\/strong>. This, in turn, will also reveal their specific pros and cons, as well - you’ll be able to evaluate them, and decide which wallet type suits your needs best!<\/p>\n<p>Starting out, the obvious - <strong>crypto storage<\/strong>. Both hot VS cold wallets allow you to store cryptocurrencies - that’s their primary feature, after all. However, what you might not be aware of is that most hardware wallets will allow you to store hundreds, if not thousands of different coins and tokens!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: Crypto Storage.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_02.jpg/" alt=\"Hot wallet VS Cold wallet: Crypto Storage.\" width=\"1000\" height=\"585\" \/><\/p>\n<p><strong>Hot wallets are a bit more diverse<\/strong>. There are plenty of options for multiple asset storage, that’s true, but there are also many hot wallets that are coin-specific - meaning, you would only be able to store a single, designated crypto asset on the wallet.<\/p>\n<p>Which option is better? Well, for most people, multiple asset storage will be the way to go. However, if you’re only going to hold a single coin or token, or if you’d like to use asset-specific wallets, in general, it’s good to know that such an option exists!<\/p>\n<p>Another thing that both hot VS cold crypto wallets have in common are the <strong>additional services available from the wallet interface<\/strong>. For example, there are many hardware and software cryptocurrency wallets that have built-in crypto acquisition features - you are able to purchase cryptocurrencies straight from the wallet, without going out to an exchange!<\/p>\n<p>As a side note, I do have to say - debating about hot wallets VS cold wallets involves understanding that <strong>buying crypto from within your wallet isn’t the safest thing to do<\/strong>, no matter what type of a wallet it is that you possess. Don’t fret, though - if you’re looking to buy crypto for the very first time, there's a dedicated section in this Crypto 101 Handbook covering the process, step-by-step - <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-buy-crypto/">check it out<\/strong><\/a>!<\/p>\n<p>Going back to the pros and cons of hot and cold crypto wallets, it’s time to address the “BIG” topic - the thing that sparks up the biggest debates among enthusiasts and crypto experts, alike. And that is the question of <strong>security VS convenience<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: Security VS Convenience.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_04.jpg/" alt=\"Hot wallet VS Cold wallet: Security VS Convenience.\" width=\"1000\" height=\"579\" \/><\/p>\n<p>You see, since the dawn of the crypto industry, cryptocurrency wallets were viewed as the ultimate beacon of security - a place where you could store your assets, and not worry that they will get stolen. At least this SHOULD be the case - naturally, it puts wallet projects under a lot of scrutiny!<\/p>\n<p>Following that, <strong>hot wallets have often been considered as the less-secure option<\/strong>, as far as hot and cold wallet comparisons go. This is because the fact that they are always connected to the internet - in theory, it makes them more susceptible to potential security breaches and hacking attempts.<\/p>\n<p>On the flip side, hardware devices are usually disconnected from your computer, and thus, from the internet, in general. This makes reaching your private keys practically impossible, unless someone were to steal your actual wallet, or attack your account while you’re making a transaction.<\/p>\n<p>Think of it like this - imagine that you live in a really densely-populated city, and need to go to work. Your work is on the other side of that city, and you have two options of transportation - either a bike, or a car.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: An example with a car and a bike.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_03.jpg/" alt=\"Hot wallet VS Cold wallet: An example with a car and a bike.\" width=\"1000\" height=\"486\" \/><\/p>\n<p>A bike allows you to pass through traffic much quicker, saving you a lot of time and patience. With a car, you’d be stuck in traffic - however, cars are usually much safer to travel in!<\/p>\n<p>This brings us to another point - <strong>convenience<\/strong>. Many enthusiasts believe that, where hot wallets are lackluster in security, they make up with the fact that they’re super-convenient to use. <strong>Cold wallets, while being very secure, can be a headache to operate<\/strong>, if you plan on transacting with crypto a few times per day or so.<\/p>\n<h2>Which is Better?<\/h2>\n<p>All of that leads us to the final question - <strong>which one should you pick?<\/strong> Or, in other words, comparing a hot wallet VS a cold wallet, which option is better?<\/p>\n<p>Well, let me tell you - you DON'T actually need to pick and choose, in the first place.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Hot wallet VS Cold wallet: Use both.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//hot_vs_cold_wallets_05.jpg/" alt=\"Hot wallet VS Cold wallet: Use both.\" width=\"1000\" height=\"780\" \/><\/p>\n<p>The easiest way to avoid any and all difficult debates and discussions, as well as cold wallet VS hot wallet comparisons, is to <strong>use at least two cryptocurrency wallets<\/strong> - one hot, and one cold. You would then store the bigger part of your <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-portfolio/">portfolio in the hardware wallet <em>(since it’s considered to be the safer alternative)<\/em>, and use the smaller amount for trading and transaction purposes <em>(since it’s more convenient)<\/em>.<\/p>\n<p>Naturally, very generally speaking, <strong>the more wallets you utilize, the better<\/strong>. This will allow you to diversify your risk, and if something were to happen to one of the wallets, you wouldn’t suffer any major losses. But, if you at least choose to use both hardware and software wallets, instead of comparing and contrasting hot VS cold wallets, this is already a move in the right direction!<\/p>\n<p>One last thing that’s worth mentioning is that the cryptocurrency wallet industry is growing and evolving, together with the rest of the space. While the stigma attached to hot wallets not being the most secure crypto storage solution is still alive and common, as time goes on, this is something that’s slowly fading away, as well.<\/p>\n<p>That being said, potential scammers and foul players are keeping up with the times, as well. Make sure to educate yourself about some of the most common crypto scam attempts, and focus on the best hot and cold cryptocurrency wallet practices!<\/p>","youtube_video":{"id":47,"channel_id":1,"sort":49,"video_title":"Hot VS Cold Wallet: Which One Do YOU Need? (Animated)","description":"What\u2019s the difference between hot wallets VS cold wallets in crypto, and which one is better?\n\nIn the realm of crypto wallets, there are two types that dominate the space - hot wallets, and cold ones. While these terms have become very popular, many crypto industry newcomers still get confused about what they mean, and the significance they bear.\n\nIn this video, I will tell you about hot wallets VS cold wallets. Specifically, you will learn about the differences and similarities between these two types of crypto storage, and I will also help you pick the best option for your own wants and needs.\n\nHave you ever used a hot or cold wallet? Which one do you prefer? Let\u2019s discuss, in the comments below!\n\nVideo Time Table:\n\n0:00 Introduction to Hot Wallet VS Cold Wallet\n1:01 What Are Hot & Cold Crypto Wallets?\n2:52 Pros & Cons of Hot & Cold Crypto Wallets\n6:03 Cold Wallet VS Hot Wallet - Which One is Better?\n7:28 Wrap-up: Hot VS Cold Wallet\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#HotWalletVsColdWallet #ColdWalletVsHotWallet #HotVsColdWallet","video_id":"h_n6-AyNv6I","duration":497,"view_count":448,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/hot-vs-cold-wallet-which-one-do-you-need-animated.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-01-11T16:04:52.000000Z","created_at":"2023-01-11T23:00:05.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :model="{"id":31,"chapter_id":4,"order":3,"featured_image_id":3062,"youtube_video_id":32,"author_id":1,"created_at":"2022-08-01T10:23:51.000000Z","updated_at":"2023-12-22T07:42:32.000000Z","slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","content":"<p>In this section, we’re going to explore what are non-custodial crypto wallets!<\/p>\n<p>If you’ve spent even a day researching cryptocurrencies, there’s a pretty good chance that you’ve run into the concept of a crypto wallet - <strong>a place where you are able to store your crypto assets, for safekeeping and convenience purposes.<\/strong> Indeed, if you plan to hold even a sliver of cryptocurrency of any kind, a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallet will be mandatory!<\/p>\n<p>That being said, did you know, though, that not all cryptocurrency wallets are the same? And I’m not only talking about their type or visual appearance - I’m referring to <strong>custodial and non-custodial wallets.<\/strong><\/p>\n<p>In this section, we’re going to talk about non-custodial wallets. Specifically, I’ll tell you what non-custodial wallets are, how they differ from custodial ones, and I’ll also give you some examples, too.<\/p>\n<p><em>Without further ado, let’s get to it!<\/em><\/p>\n<h2>Two Types of Cryptocurrency Wallets<\/h2>\n<p>So - to start things off, before we can figure out what are non-custodial wallets, let’s first explore what does the term “non-custodial” mean.<\/p>\n<p>Well, this term has a pretty wide variety of applications. <strong>In the world of crypto, though, “non-custodial” references the privacy and security of your crypto assets.<\/strong><\/p>\n<p><strong><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Non-custodial wallet: Two types of cryptocurrency wallets – non-custodial and custodial.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what_are_non-custodial_wallets_01.o.jpg/" alt=\"Non-custodial wallet: Two types of cryptocurrency wallets – non-custodial and custodial.\" width=\"1000\" height=\"303\" \/><\/strong><\/p>\n<p>“Custodial” VS “non-custodial” are terms used to describe cryptocurrency wallets - essentially, you can view them as the two big types of wallets you’ll come across. <strong>Custodial wallets<\/strong> are those that can be accessed by a third party <em>(namely, it’s usually the creators of the wallet)<\/em>, while with <strong>non-custodial wallets<\/strong>, the holder of the wallet is the only person who will be able to access it, at any point in time.<\/p>\n<p>So, you can think about it this way - imagine that you have a physical wallet, where you keep your money, ID, and other important documents. YOU are the holder of that wallet, and all of its contents - whatever it may be - belongs to you.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Non-custodial wallet: An example with a wallet.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what_are_non-custodial_wallets_02.o.jpg/" alt=\"Non-custodial wallet: An example with a wallet.\" width=\"1000\" height=\"378\" \/><\/p>\n<p>Now, imagine that the creators of your physical wallet - the company that made it - would be able to have access to it, at any point in time. Whether you’re walking down the street to your friend’s house, or shopping at a mall, or even sleeping in your bed at night, your wallet could be “checked” by that company, whenever.<\/p>\n<p><em>Sounds horrible, doesn’t it? <\/em>Well, yes, it does - that’s the whole point!<\/p>\n<p><strong>Non-custodial wallets have become the standard in the industry<\/strong> - while there are certain arguments for why you would choose a custodial wallet over a non-custodial one, and we’ll cover those arguments in a minute, they are generally seen as being pretty weak and lacklustre.<\/p>\n<h2>An Example of a Non-Custodial Wallet<\/h2>\n<p>Before we get to discussing the benefits and drawbacks of non-custodial cryptocurrency wallets, I want to give you an example of what I’m talking about, so that you could have some sort of a mental image to relate to, as we move on with the explanations!<\/p>\n<p>As I’ve mentioned earlier, non-custodial wallets have become the standard - it’s one of the core features that crypto fans look for, when picking out the best wallet for themselves. <strong>A great example of what I’m talking about would be a wallet called <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//ambire/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Ambire<\/strong><\/a><\/strong> - one that is often mentioned, when talking about the best non-custodial wallets.<\/p>\n<p><strong>What is the Ambire Wallet? <\/strong>Well, Ambire is an application that allows you to store, send, and receive various cryptocurrencies, with ease. Now, the term “application” might not be entirely correct here - while Ambire is a web app, it works on your browser, and you would use it as a website.<\/p>\n<p><strong><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Non-custodial wallet: Ambire crypto wallet.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what_are_non-custodial_wallets_03.o.jpg/" alt=\"Non-custodial wallet: Ambire crypto wallet.\" width=\"1000\" height=\"410\" \/><\/strong><\/p>\n<p>So, the way that you can look at it is this - when you’re using, say, Facebook on your computer, you go to the official website of the platform, log in to your profile, and take it from there. The exact same is true with the Ambire Wallet - <strong>you don’t need to download or install anything, which is great!<\/strong><\/p>\n<p>The wallet prides itself on a few different things, but the fact that it’s a non-custodial way to store your crypto is definitely among the most important ones. Ambire is also <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-open-source/">open-source, which only adds to the transparency of the platform - <strong>anyone can come in and check the code behind it!<\/strong><\/p>\n<p>Ambire also has a load of additional features to offer, to everyone from industry newcomers, all the way to crypto veterans. The wallet has a <strong>built-in swapping and trading tool<\/strong>, that will allow you to purchase cryptocurrencies from within the wallet, eliminating the need to go to a designated exchange.<\/p>\n<p>Think about it this way - say, your significant other has sent you to the shop, to purchase some flowers and bread. Instead of going to two different stores, you could just go to the shopping mall, purchase both the flowers and the bread there, and save yourself the extra trip.<\/p>\n<p>With Ambire, you don’t need to register on a dedicated cryptocurrency exchange, fund your account, purchase crypto, and then send it to the wallet - <strong>everything can be done from the wallet interface itself! <\/strong>Now, there are different pros and cons associated with this, but the fact that you have the ability to do so is still a huge benefit!<\/p>\n<p>Following that, Ambire also offers users <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-token-swap/">cross-chain token swaps<\/strong><\/a>, yield earning opportunities, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hardware-wallet/">hardware wallet<\/strong><\/a> support, Ambire Wallet token <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-airdrop/">airdrops, and many additional benefits. Now, if all of those terms sound completely alien to you, don’t stress - they’re some of the more-difficult crypto topics to wrap your head around! Check out other sections or the glossary of the Crypto 101 Handbook to find more information about these terms.<\/p>\n<p>I’ve chosen Ambire as my non-custodial wallet example due to the fact of just how simple the feature is to understand, with this particular product. Once you create your wallet, you will be asked to <strong>download your backup file<\/strong> - you’re the only one who will have access to it, and thus, no one else will be able to take your crypto funds away from you<em> (unless you get hacked or scammed, that is!)<\/em>.<\/p>\n<h2>Custodial VS Non-Custodial Wallets: Pros and Cons<\/h2>\n<p>Now that you have an example of a non-custodial wallet, let’s move on and talk about the actual, specific benefits that you may expect to receive, while using Ambire, and other non-custodial wallets.<\/p>\n<p>First and foremost, <strong>security is probably the biggest concern<\/strong> that anyone looking for a cryptocurrency wallet should have. When you’re using a custodial service, there are multiple points of failure - since your data is stored with the company behind the wallet, if a hack were to occur, your information could be compromised!<\/p>\n<p>Think of it as driving - if you’re using a non-custodial wallet, you’re basically behind the steering wheel. Whatever happens, you will be able to react accordingly, and won’t need to put your fate into the hands of some other driver, while you’re sitting in the passenger seat. The latter scenario would be equivalent to a custodial wallet service.<\/p>\n<p><strong>Fund access is another big point to consider, too.<\/strong> Usually, with a non-custodial wallet <em>(such as Ambire)<\/em>, you are able to access your crypto without having to connect to the internet, while with a custodial wallet service, you would need to log in to your account, and be connected to the platform where the wallet is based.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Non-custodial wallet: Custodial VS Non-custodial wallets.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what_are_non-custodial_wallets_04.o.jpg/" alt=\"Non-custodial wallet: Custodial VS Non-custodial wallets.\" width=\"1000\" height=\"286\" \/><\/p>\n<p>Lastly, while this does have to do with security, it’s something that I feel like I need to mention, separately. If you were to use Ambire, or another non-custodial wallet, <strong>you would be the single owner of your <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-private-key-secret-key/">secret wallet key<\/strong><\/a><\/strong> <em>(or a backup, depending on the wallet in question)<\/em>. Custodial wallets do not allow you to own that private key - instead, it is kept with the wallet’s creators.<\/p>\n<p><strong>Now, the argument that people have FOR custodial wallets is that<\/strong> <strong>they save you a lot of hassle<\/strong> - you can expect frequent updates, a smooth user experience, and other, similar features. While that is often true, especially with high-profile wallet brands, these days, non-custodial wallets can often offer a similar, if not the same level of user experience!<\/p>\n<h2>How to Register on Ambire?<\/h2>\n<p>Now that you’re aware of what are non-custodial wallets, let's circle back to the Ambire Wallet - specifically, since I’ve already told you that it’s a good example of a non-custodial wallet,<strong> I’d like to explain how you can start using the non-custodial Ambire Wallet, too!<\/strong> Worry not - the process is very beginner-friendly.<\/p>\n<p>First, you’ll need to go to Ambire’s official website - it’s <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//ambire/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>www.ambire.com<\/strong><\/a>. Always double-check if you’ve entered the right address into your search bar, since scammers can create look-a-like websites to try and steal your cryptocurrency!<\/p>\n<p>You can take your time and look around, and, once you’re ready to register, simply click on the <strong>“GO TO WALLET”<\/strong> button on the header of the page. Here, you can either create a new account, or add an already-existing wallet.<\/p>\n<p>If you’re an experienced crypto enthusiast, you can choose one of these options. However, I’ll assume that you’re just starting out, so, let’s create a brand new account - <strong>enter your email address, and think of a strong password.<\/strong> <em>Birth dates and pet names won’t cut it, so don’t even think about it!<\/em><\/p>\n<p>Now, as you can see, <strong>Ambire asks for a few permissions.<\/strong> First, you’ll need to confirm your email address, and after you do that, the wallet will also ask you to enable browser notifications, as well as permission to access your clipboard. Don't worry, though - all of these permissions are needed solely for the proper functioning of the wallet.<\/p>\n<p>Lastly, here is the most specific step when it comes to non-custodial wallets - before you can start using, for example, the Ambire Wallet, you will need to <strong>download your backup, which you would use to recover a lost wallet account.<\/strong> This is probably the most important part for this type of wallets.<\/p>\n<p>With all of that being done, you’re in - welcome to your Ambire Wallet dashboard! On the left side panel, you can see all of the essential sections that might be useful in your crypto journey. At the top of the page, you can change your network, and view your wallet address, too.<\/p>\n<h2>Ending Thoughts<\/h2>\n<p>Wrapping things up, I hope that you now know what non-custodial wallets are, what is the Ambire Wallet, and why such wallets are the preferred method of cryptocurrency storage. If you value security, and the privacy of your personal information, this type of wallets is definitely the way to go, and the Ambire Wallet is probably a good place to start.<\/p>","definition":"Did you know crypto wallets store your private keys instead of storing the actual assets?","status":"published","meta_title":"What are Non-Custodial Wallets and Why Are They Useful?","meta_description":"Wondering what are non-custodial wallets? You'll find a beginner-friendly answer right here, together with a non-custodial wallet example!","meta_keywords":"non custodial wallet, custodial wallet, custodial vs non custodial wallet, best non custodial wallet, what is a non custodial wallet","modified_content":"<p>In this section, we’re going to explore what are non-custodial crypto wallets!<\/p>\n<p>If you’ve spent even a day researching cryptocurrencies, there’s a pretty good chance that you’ve run into the concept of a crypto wallet - <strong>a place where you are able to store your crypto assets, for safekeeping and convenience purposes.<\/strong> Indeed, if you plan to hold even a sliver of cryptocurrency of any kind, a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallet will be mandatory!<\/p>\n<p>That being said, did you know, though, that not all cryptocurrency wallets are the same? And I’m not only talking about their type or visual appearance - I’m referring to <strong>custodial and non-custodial wallets.<\/strong><\/p>\n<p>In this section, we’re going to talk about non-custodial wallets. Specifically, I’ll tell you what non-custodial wallets are, how they differ from custodial ones, and I’ll also give you some examples, too.<\/p>\n<p><em>Without further ado, let’s get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"Non-custodial Wallet: Why Do You Need It Right NOW\"\n title=\"Non-custodial Wallet: Why Do You Need It Right NOW\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: What are Non-Custodial Crypto Wallets?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"What are Non-Custodial Crypto Wallets?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"g6IkWd9s28I\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">Non-custodial Wallet: Why Do You Need It Right NOW<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/non-custodial-wallet-why-do-you-need-it-right-now.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/non-custodial-wallet-why-do-you-need-it-right-now.jpg?tr=w-760 1000w\"\n alt=\"Non-custodial Wallet: Why Do You Need It Right NOW\"\n title=\"Non-custodial Wallet: Why Do You Need It Right NOW\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"Non-custodial Wallet: Why Do You Need It Right NOW\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>Two Types of Cryptocurrency Wallets<\/h2>\n<p>So - to start things off, before we can figure out what are non-custodial wallets, let’s first explore what does the term “non-custodial” mean.<\/p>\n<p>Well, this term has a pretty wide variety of applications. <strong>In the world of crypto, though, “non-custodial” references the privacy and security of your crypto assets.<\/strong><\/p>\n<p><strong><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Non-custodial wallet: Two types of cryptocurrency wallets – non-custodial and custodial.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what_are_non-custodial_wallets_01.o.jpg/" alt=\"Non-custodial wallet: Two types of cryptocurrency wallets – non-custodial and custodial.\" width=\"1000\" height=\"303\" \/><\/strong><\/p>\n<p>“Custodial” VS “non-custodial” are terms used to describe cryptocurrency wallets - essentially, you can view them as the two big types of wallets you’ll come across. <strong>Custodial wallets<\/strong> are those that can be accessed by a third party <em>(namely, it’s usually the creators of the wallet)<\/em>, while with <strong>non-custodial wallets<\/strong>, the holder of the wallet is the only person who will be able to access it, at any point in time.<\/p>\n<p>So, you can think about it this way - imagine that you have a physical wallet, where you keep your money, ID, and other important documents. YOU are the holder of that wallet, and all of its contents - whatever it may be - belongs to you.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Non-custodial wallet: An example with a wallet.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what_are_non-custodial_wallets_02.o.jpg/" alt=\"Non-custodial wallet: An example with a wallet.\" width=\"1000\" height=\"378\" \/><\/p>\n<p>Now, imagine that the creators of your physical wallet - the company that made it - would be able to have access to it, at any point in time. Whether you’re walking down the street to your friend’s house, or shopping at a mall, or even sleeping in your bed at night, your wallet could be “checked” by that company, whenever.<\/p>\n<p><em>Sounds horrible, doesn’t it? <\/em>Well, yes, it does - that’s the whole point!<\/p>\n<p><strong>Non-custodial wallets have become the standard in the industry<\/strong> - while there are certain arguments for why you would choose a custodial wallet over a non-custodial one, and we’ll cover those arguments in a minute, they are generally seen as being pretty weak and lacklustre.<\/p>\n<h2>An Example of a Non-Custodial Wallet<\/h2>\n<p>Before we get to discussing the benefits and drawbacks of non-custodial cryptocurrency wallets, I want to give you an example of what I’m talking about, so that you could have some sort of a mental image to relate to, as we move on with the explanations!<\/p>\n<p>As I’ve mentioned earlier, non-custodial wallets have become the standard - it’s one of the core features that crypto fans look for, when picking out the best wallet for themselves. <strong>A great example of what I’m talking about would be a wallet called <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//ambire/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Ambire<\/strong><\/a><\/strong> - one that is often mentioned, when talking about the best non-custodial wallets.<\/p>\n<p><strong>What is the Ambire Wallet? <\/strong>Well, Ambire is an application that allows you to store, send, and receive various cryptocurrencies, with ease. Now, the term “application” might not be entirely correct here - while Ambire is a web app, it works on your browser, and you would use it as a website.<\/p>\n<p><strong><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Non-custodial wallet: Ambire crypto wallet.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what_are_non-custodial_wallets_03.o.jpg/" alt=\"Non-custodial wallet: Ambire crypto wallet.\" width=\"1000\" height=\"410\" \/><\/strong><\/p>\n<p>So, the way that you can look at it is this - when you’re using, say, Facebook on your computer, you go to the official website of the platform, log in to your profile, and take it from there. The exact same is true with the Ambire Wallet - <strong>you don’t need to download or install anything, which is great!<\/strong><\/p>\n<p>The wallet prides itself on a few different things, but the fact that it’s a non-custodial way to store your crypto is definitely among the most important ones. Ambire is also <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-open-source/">open-source, which only adds to the transparency of the platform - <strong>anyone can come in and check the code behind it!<\/strong><\/p>\n<p>Ambire also has a load of additional features to offer, to everyone from industry newcomers, all the way to crypto veterans. The wallet has a <strong>built-in swapping and trading tool<\/strong>, that will allow you to purchase cryptocurrencies from within the wallet, eliminating the need to go to a designated exchange.<\/p>\n<p>Think about it this way - say, your significant other has sent you to the shop, to purchase some flowers and bread. Instead of going to two different stores, you could just go to the shopping mall, purchase both the flowers and the bread there, and save yourself the extra trip.<\/p>\n<p>With Ambire, you don’t need to register on a dedicated cryptocurrency exchange, fund your account, purchase crypto, and then send it to the wallet - <strong>everything can be done from the wallet interface itself! <\/strong>Now, there are different pros and cons associated with this, but the fact that you have the ability to do so is still a huge benefit!<\/p>\n<p>Following that, Ambire also offers users <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-token-swap/">cross-chain token swaps<\/strong><\/a>, yield earning opportunities, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hardware-wallet/">hardware wallet<\/strong><\/a> support, Ambire Wallet token <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-airdrop/">airdrops, and many additional benefits. Now, if all of those terms sound completely alien to you, don’t stress - they’re some of the more-difficult crypto topics to wrap your head around! Check out other sections or the glossary of the Crypto 101 Handbook to find more information about these terms.<\/p>\n<p>I’ve chosen Ambire as my non-custodial wallet example due to the fact of just how simple the feature is to understand, with this particular product. Once you create your wallet, you will be asked to <strong>download your backup file<\/strong> - you’re the only one who will have access to it, and thus, no one else will be able to take your crypto funds away from you<em> (unless you get hacked or scammed, that is!)<\/em>.<\/p>\n<h2>Custodial VS Non-Custodial Wallets: Pros and Cons<\/h2>\n<p>Now that you have an example of a non-custodial wallet, let’s move on and talk about the actual, specific benefits that you may expect to receive, while using Ambire, and other non-custodial wallets.<\/p>\n<p>First and foremost, <strong>security is probably the biggest concern<\/strong> that anyone looking for a cryptocurrency wallet should have. When you’re using a custodial service, there are multiple points of failure - since your data is stored with the company behind the wallet, if a hack were to occur, your information could be compromised!<\/p>\n<p>Think of it as driving - if you’re using a non-custodial wallet, you’re basically behind the steering wheel. Whatever happens, you will be able to react accordingly, and won’t need to put your fate into the hands of some other driver, while you’re sitting in the passenger seat. The latter scenario would be equivalent to a custodial wallet service.<\/p>\n<p><strong>Fund access is another big point to consider, too.<\/strong> Usually, with a non-custodial wallet <em>(such as Ambire)<\/em>, you are able to access your crypto without having to connect to the internet, while with a custodial wallet service, you would need to log in to your account, and be connected to the platform where the wallet is based.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Non-custodial wallet: Custodial VS Non-custodial wallets.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what_are_non-custodial_wallets_04.o.jpg/" alt=\"Non-custodial wallet: Custodial VS Non-custodial wallets.\" width=\"1000\" height=\"286\" \/><\/p>\n<p>Lastly, while this does have to do with security, it’s something that I feel like I need to mention, separately. If you were to use Ambire, or another non-custodial wallet, <strong>you would be the single owner of your <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-private-key-secret-key/">secret wallet key<\/strong><\/a><\/strong> <em>(or a backup, depending on the wallet in question)<\/em>. Custodial wallets do not allow you to own that private key - instead, it is kept with the wallet’s creators.<\/p>\n<p><strong>Now, the argument that people have FOR custodial wallets is that<\/strong> <strong>they save you a lot of hassle<\/strong> - you can expect frequent updates, a smooth user experience, and other, similar features. While that is often true, especially with high-profile wallet brands, these days, non-custodial wallets can often offer a similar, if not the same level of user experience!<\/p>\n<h2>How to Register on Ambire?<\/h2>\n<p>Now that you’re aware of what are non-custodial wallets, let's circle back to the Ambire Wallet - specifically, since I’ve already told you that it’s a good example of a non-custodial wallet,<strong> I’d like to explain how you can start using the non-custodial Ambire Wallet, too!<\/strong> Worry not - the process is very beginner-friendly.<\/p>\n<p>First, you’ll need to go to Ambire’s official website - it’s <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//ambire/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>www.ambire.com<\/strong><\/a>. Always double-check if you’ve entered the right address into your search bar, since scammers can create look-a-like websites to try and steal your cryptocurrency!<\/p>\n<p>You can take your time and look around, and, once you’re ready to register, simply click on the <strong>“GO TO WALLET”<\/strong> button on the header of the page. Here, you can either create a new account, or add an already-existing wallet.<\/p>\n<p>If you’re an experienced crypto enthusiast, you can choose one of these options. However, I’ll assume that you’re just starting out, so, let’s create a brand new account - <strong>enter your email address, and think of a strong password.<\/strong> <em>Birth dates and pet names won’t cut it, so don’t even think about it!<\/em><\/p>\n<p>Now, as you can see, <strong>Ambire asks for a few permissions.<\/strong> First, you’ll need to confirm your email address, and after you do that, the wallet will also ask you to enable browser notifications, as well as permission to access your clipboard. Don't worry, though - all of these permissions are needed solely for the proper functioning of the wallet.<\/p>\n<p>Lastly, here is the most specific step when it comes to non-custodial wallets - before you can start using, for example, the Ambire Wallet, you will need to <strong>download your backup, which you would use to recover a lost wallet account.<\/strong> This is probably the most important part for this type of wallets.<\/p>\n<p>With all of that being done, you’re in - welcome to your Ambire Wallet dashboard! On the left side panel, you can see all of the essential sections that might be useful in your crypto journey. At the top of the page, you can change your network, and view your wallet address, too.<\/p>\n<h2>Ending Thoughts<\/h2>\n<p>Wrapping things up, I hope that you now know what non-custodial wallets are, what is the Ambire Wallet, and why such wallets are the preferred method of cryptocurrency storage. If you value security, and the privacy of your personal information, this type of wallets is definitely the way to go, and the Ambire Wallet is probably a good place to start.<\/p>","youtube_video":{"id":32,"channel_id":1,"sort":64,"video_title":"Non-custodial Wallet: Why Do You Need It Right NOW","description":"What are non-custodial crypto wallets?\n\nCryptocurrency wallets come in all shapes and sizes. One of the more-interesting terms associated with these wallets is \u201cnon-custodial\u201d - it\u2019s a term that you\u2019ll find thrown around in crypto circles, rather often. \n\nIn this video, I will tell you all about non-custodial crypto wallets. You\u2019ll learn what this term means in the context of cryptocurrencies, how it\u2019s different from custodial wallets, and I\u2019ll also tell you about a great non-custodial wallet example, too - the Ambire crypto wallet!\n\nHave you ever used a custodial or non-custodial crypto wallet? Share your experiences in the comments below!\n\nVideo Time Table:\n0:00 Introduction to What is a Non-Custodial Wallet in Crypto\n0:57 Non-custodial Wallets vs Custodial Wallets\n2:18 Non-custodial Wallet Example: Ambire Wallet\n4:54 Non-custodial Wallet Pros & Cons\n6:27 How to Register on the Ambire Wallet?\n8:13 Wrap-up: What is a Non-Custodial Wallet in Crypto?\n\nMore Related Videos:\n? What Does Staking Mean in Crypto? \nhttps:\/\/www.youtube.com\/watch?v=irhlfrCrywo\n? What is a MetaMask Wallet?\nhttps:\/\/www.youtube.com\/watch?v=6vGE446Fjvg\n? What is DeFi in Crypto?\nhttps:\/\/www.youtube.com\/watch?v=GVeoES3lKfQ\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#NonCustodialWallet #CustodialvsNonCustodialWallet #AmbireWallet","video_id":"g6IkWd9s28I","duration":515,"view_count":699,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/non-custodial-wallet-why-do-you-need-it-right-now.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2022-08-01T21:17:12.000000Z","created_at":"2022-08-01T23:00:04.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}},"featured_image":{"id":3062,"uuid":"08d996ce-598b-4a99-baca-a7d6ce9d83b1","name":"non-custodial-wallet-featured-image.o.jpg","url":"https:\/\/assets.bitdegree.org\/crypto\/storage\/media\/non-custodial-wallet-featured-image.o.jpg","path":"crypto\/storage\/media\/non-custodial-wallet-featured-image.o.jpg","mime_type":"image\/jpeg","disk":"digitalOceanSpaces","size":122323,"width":768,"height":478,"custom_properties":null,"created_at":"2023-06-19T06:58:36.000000Z","updated_at":"2023-06-19T06:58:36.000000Z"}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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Crypto","status":"published","modified_content":null}]},{"id":3,"title":"Crypto Exchanges","slug":"crypto-exchanges","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-exchanges.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-exchanges-101.jpg","rating":80,"sections":[{"chapter_id":3,"order":1,"slug":"how-do-cryptocurrency-exchanges-work","title":"How do Cryptocurrency Exchanges Work?","status":"published","modified_content":null},{"chapter_id":3,"order":2,"slug":"dex-vs-cex","title":"DEX VS CEX: Two Sides of the Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":3,"order":3,"slug":"crypto-day-trading","title":"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping","status":"published","modified_content":null},{"chapter_id":3,"order":4,"slug":"kyc-crypto","title":"KYC & AML: The Key to Complying With Legal Industry Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming Techniques","status":"published","modified_content":null},{"chapter_id":6,"order":12,"slug":"what-is-an-oracle-in-crypto","title":"Crypto Oracles: The Link Between Blockchain and Outside World Data","status":"published","modified_content":null},{"chapter_id":6,"order":13,"slug":"crypto-gambling","title":"The Peculiarities of Decentralized Crypto Gambling","status":"published","modified_content":null},{"chapter_id":6,"order":14,"slug":"what-is-the-metaverse","title":"Metaverse: A New Perception of Reality","status":"published","modified_content":null}]},{"id":7,"title":"Trading & Investing","slug":"trading-and-investing","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-trading.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-trading-101.jpg","rating":80,"sections":[{"chapter_id":7,"order":1,"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration Date","status":"published","modified_content":null},{"chapter_id":7,"order":8,"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":9,"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","status":"published","modified_content":null},{"chapter_id":7,"order":10,"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":11,"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","status":"published","modified_content":null},{"chapter_id":7,"order":12,"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","status":"published","modified_content":null}]},{"id":8,"title":"Crypto Analysis","slug":"crypto-analysis","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-analysis.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-analysis-101.jpg","rating":100,"sections":[{"chapter_id":8,"order":1,"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","status":"published","modified_content":null},{"chapter_id":8,"order":2,"slug":"best-technical-analysis-indicators-for-crypto","title":"5 Best Crypto Technical Analysis Indicators You Must Know About","status":"published","modified_content":null},{"chapter_id":8,"order":3,"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","status":"published","modified_content":null},{"chapter_id":8,"order":4,"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]" current-chapter="crypto-wallets" current-section="non-custodial-wallet">

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