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⚡️Custodial vs Non-Custodial wallets ⚡️ Benefits of light wallets

What is a custodial wallet?

  • You can manage your funds very quickly and at any time when there is an Internet connection;
  • No chance to lose your private key and lose access to your money;
  • The custodian has control over your money;
  • Your crypto-coins can be seized by a court decision;
  • If your wallet gets hacked, your coins may go missing;
  • In the case of ​a​ fork, there is a chance ​of not receiving​ your coins.
  1. Bitfinex is one of the largest cryptocurrency-related fintech companies. Nevertheless, in 2016, Bitfinex suffered the largest crash in history, ​when​ hackers stole 120 000 bitcoins, ​which​ Bitfinex had to compensate ​users for​ with its operating profit.
  2. Bithumb is the Korean crypto exchange. It supports 10 cryptocurrencies and is one of the leaders in trading volumes per day. In 2017, Bithumb was hacked, when 1.2 million ​Korean Won​ were stolen.
  3. Cryptsy was an American crypto exchange founded by Paul Vernon. On the platform, it was possible to trade Bitcoin and Litecoin, but once Cryptsy ​suffered a​ hacker attack, which resulted in stolen coins totaling $5 million.
  4. Coinbase — ​ is the​ largest exchange for trading cryptocurrencies, which is also one of the few whose own accounts have never been hacked.
  5. Mt.Gox the​ infamous crypto exchange, ​was​ one of the first in the market and most affected by the hacking. As a ​result, $8 million disappeared.
  6. BTC-e — the largest Russian exchange. In July 2017, it suddenly went offline, and its director was arrested.
  7. Poloniex — a quite well-known and large crypto-exchange with more than 100 cryptocurrencies for trading. In 2018, it has been actively attacked by scammers, trying to get access to user accounts.
  8. Kraken — ​an​ American exchange with 2F-authorisation. Still, during 2018, some of its clients suffered from phishing.
  1. Freewallet — within the platform Freewallet users have the ability to create mobile cryptocurrency wallets to work with tokens. It has a variety of cryptocurrency options, including Bitcoin, Ethereum, DASH, Dogecoin, FantomCoin, Monero, DECENT, Lisk, NXT, Zcash, Steem, Ardor, DigitalNote, Bancor, Tether, and other altcoins. In 2017, users started complaining that Freewallet ​had​ sent their money to unknown addresses.
  2. Blockchain.info is a ​partially​ centralized wallet. ​Still, it has suffered some major thefts — for example in February 2018, hackers ​stole​ 700 BTC.
  3. BTC.com — This application was the first ​mobile client​ of its kind designed not for stationary devices, but for tablets and smartphones. The client connects to the Bitcoin network directly, which eliminates the possibility of obtaining your confidential data and access to existing assets by third parties.

Light (Non-custodial) wallets

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Guarda Team

We write about essential updates and news around Guarda Wallet Ecosystem