Before considering whether you need to invest in crypto, you must first consider choosing the right wallet for your digital assets. Besides operating any operations in the world of crypto, you require a wallet to store your coins.
Therefore you need to choose an appropriate wallet that not only suits your investment needs but also guarantees the safety of your crypto holdings. While we have various types of crypto wallets in the digital ecosystem, custodial wallets have attracted the attention of many investors.
Unlike other wallets that charge users high fees for transactions, custodial wallet users do not have to pay a higher amount for transactions. In that case, customers can transact within the ecosystem without being subjected to hefty transaction fees.
In this article, we highlight some key features that have made custodial wallets more attractive to crypto investors.
Entrusting a third party with your private keys relieves you of the fear of losing them. Additionally, custodial wallets come with backup features that make it easier to secure your private keys should anything happen.
In any case, you have no keys to lose hence you will just have to reconfirm your identity to regain access to your wallet. In fact if you have concerns about your internet security then custodial wallets offer a perfect solution.
A key benefit of using custodial wallets is fast access. All you need is a password to access your funds which are immediately available for users. Furthermore, transactions on the exchanges are a bit cheaper compared to non-custodial wallets.
Customer Support Services
Although non-custodial wallets may give you total control over your wallet, you may have no one to consult should anything happen to your funds. This is opposed to custodial wallets which operate on exchanges. As such, it would be easier to seek help from customer support to recover your account.
Convenient to use
Custodial wallets are a perfect choice for new crypto users. This is because it makes it easier for you to trade without worrying about losing your keys.
Losing private keys can be so devastating especially if you are just starting with crypto investment. In that regard, many crypto investors prefer custodial wallets since they do not need much responsibility and are more convenient.
Eliminates the use of private keys
Private keys are critical in guaranteeing the safety of your crypto holdings. Losing them may result in the loss of your entire investment to third parties. With custodial wallets, exchanges take total control of the safety of your keys.
That way, you can easily recover your account should you lose your password. With a third party managing the privacy of your wallet, you minimize the chances of losing your investment should you forget or misplace your private keys.
The popularity of custodial crypto wallets is likely to grow over the years. This is attributed to growth in the number of crypto exchanges that come with better security features. All you need is to invest your crypto and entrust the exchanges with the safety of your crypto holdings.