When looking for a deal Cryptocurrencies Or NFT Having a digital wallet is essential for this type of asset. These are tools for blockchain or network blocking and for managing cryptocurrencies through them: buy, sell, transfer, etc.

It is important to understand this first There are two types of keys: public and private. Public keys are data such as a bank account number or email address that you can share with other users to complete a transaction. In short, they identify the account.

On the other hand, personal keys, as their name suggests, cannot be shared publicly. These are keys that work like passwords and give access to networked assets or funds.

They are formed by a sequence of numbers and letters derived from the original phrase or seed Which arises when setting up a crypto wallet for the first time. This initial phrase consists of 12 or 24 easy-to-remember terms that serve to recover the personal keys of the wallet.

There are two main types of cryptocurrencies: With guardianship and without care. In the first case, there is a third party who keeps the personal keys, while in the second, this information remains in the hands of the owner.

Benefits and contraindications

One of the benefits Non-custodial wallets This is because the owner has all the controls and this can be perceived positively for certain types of people.

They are open for everyone to use and it is not necessary to verify the identity of the person (name, surname, document) to open an account and start trading.

Operating costs are low and these are wallets that were used from the beginning when bitcoin and other cryptocurrencies emerged.

However, these wallets can also be a problem if certain precautions are not taken. If private keys are lost, for example, this user will no longer have access to their crypto assets.

It is estimated that about 20% of the existing 18.5 million bitcoins. They are in wallets that their users cannot access because they have lost their keys.

The same can happen if the person who has this data dies and leaves no information recorded anywhere. Your heirs will not be able to access this data.

Trust Wallet, Coinbase and MetaMask are a few examples of non-custodial wallets. As already mentioned, in this case the user should take care to remember the personal keys and the seed phrase. This information can be recorded on paper and stored in a safe or stored on a device that is not connected to the network.

Unlike these types of products, st Guardian wallets, personal keys are managed by a third party. Therefore, if you choose this option, it is important to choose a trusted provider..

The benefit of these wallets is that assets can be accessed in the event of a password being forgotten, as they offer customer service and various mechanisms for verifying an identity.

This type of product usually requires customer authentication and the system may ask them to upload documentation, take a photo or record a video, for example, to verify.

Continue reading: