Crypto Wallets: A Dive into Custodial and Non-Custodial Wallets
Have you ever wondered where cryptocurrency is stored? Just as we require a safe place to put our money, such as a pocket wallet, piggy bank, or bank, we also need a place to store our crypto. Even though crypto is not tangible cash like traditional fi at currency, but rather digital, it still requires a secure location to be stored. Custodial and non-custodial wallets are the two main places where crypto is stored, and are often used at centralized and decentralized exchanges (CEX and DEX) for buy and sell transactions.
Now, let’s take a look at what cryptocurrency wallets are.
What’s a Crypto Wallet?
The first thing you need is a wallet if you want to start investing in cryptocurrencies or sports bet at UBET Sports! Your ability to send and receive cryptocurrency is enabled via your wallet, which also keeps your coins. Custodial and non-custodial wallets are the two types of wallets.
Custodial Wallets
Custodial wallets are crypto wallets controlled by third-party custodians, often known as exchanges or CEX. These custodians are CEX, and you can only access your wallet by logging into their site. Using a custodial wallet simply puts your money in the hands of someone else, which comes with significant risk. All of the CEX mentioned before, such as Binance and Coinbase, are examples of custodial wallets.
CEX doesn’t have to do much with blockchain. It is a purely centralized trading platform. With CEX and custodial wallet, you don’t get any benefits that we list here. Let us introduce you to DEX and non-custodial wallet!
Non-Custodial Wallets
All the cryptocurrency in the non-custodial wallet lives inside the blockchain. Non-custodial wallets are synonymous with DEX because they are what we use to access or interact with DEX. Unlike a custodial wallet, a non-custodial wallet gives you complete access and management over your cryptocurrencies. Non-custodial wallets include Metamask, Magic Wallet, and Trust Wallet.
Non-custodial wallets are used to interact with DEXs like Uniswap, Sushiswap etc. You also need a non-custodial wallet like Metamask to access and utilize the UBET SPORTS platform.
The table below shows the differences between Custodial wallets and Non-custodial wallets:
Non-Custodial Wallets Options
Let’s look at some options for non-custodial wallets;
Metamask — Metamask is a non-custodial cryptocurrency wallet that allows you to receive and send cryptocurrency, store your money, interact with DApps (decentralized applications), and collect NFT. Metamask is available on both mobile devices and desktop computers. Metamask is well-known for its ease of use, and it is essentially exclusive to the Ethereum Blockchain.
Magic Wallet — Magic wallet is a non-custodial wallet that removes the burden of dealing with dozens of passwords online. To function, the Magic Link Wallet merely needs your email address. Magic link enables the creation and authentication of a wallet using an email address. Magic Wallet, like the Metamask wallet, is used to send and receive cryptocurrency.
Trust Wallet — Trust wallet is a simple and user-friendly smartphone app for transferring and receiving cryptocurrency. Trust wallet is a non-custodial cryptocurrency wallet that allows you to send and receive cryptocurrency, as well as exchange cryptocurrency, and engage with Dapps.
Connect to UBET Using Metamask and Magic Wallet
The UBET Sports platform allows you to join using your Metamask and Magic wallets in simple steps without having to go through the tedious registration and authentication procedure as seen when using custodial wallets, which is one of the wonderful features of Web3. In our upcoming piece, we’ll go through the simple step-by-step procedure for accomplishing this.
Takeaway
Non-Custodial wallets and DEX provide everything that crypto was designed to provide: privacy, anonymity, and security. Their biggest flaw is that they’re still new and maybe a little confusing for newbies. CEX and Custodial wallets, on the other hand, operate against practically every use case for which cryptocurrency was designed.
Importantly, the future of finance appears to be decentralized; DEX serves as a doorway for increased mass adoption of cryptocurrency.
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Disclaimer: The above content is intended for information purposes only and is not intended to be gambling, trading, nor investment advice. Please perform your own analysis before making any betting, trading, or investments based on your own personal circumstances or seek a duly licensed professional for gambling and trading advice. Accordingly, neither UBET nor its partners, directors, shareholders or employees are liable for any damage, expense, or other loss that you may incur out of reliance on the above information.
