Get a Sense of How Crypto Wallets Work
A crypto wallet is a tool you can use to interact with a blockchain network. There are various crypto wallet types, but we can divide them into two main groups: custodial wallets and non-custodial wallets.
Custodial wallets are easier to set up. They are more convenient because the service provider holds your funds and private keys in custody, meaning you don’t have to worry about losing your private keys. When you buy or trade crypto through an exchange like Binance, you are using custodial wallets.
Non-custodial wallets require some knowledge to set up and use, but they give you full control over your assets and keys. These wallets allow you to be your own bank, but you need to be extra careful. If you lose your private keys, you will likely lose access to your funds permanently.
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