Security is of utmost importance when referring to digital currencies. There are a lot of scams and potentially financially devastating cyber activity, and protecting your investment portfolio is paramount. One option for protecting your assets is to consider what kind of wallet you store your cryptocurrency in.
Non-Custodial Wallets
Non-custodial wallets have become popular over the years since they offer crypto users total control over their crypto holdings. In this case, users do not need a third party to help them manage their wallets or perform any activity they may need with their wallets.
Rampant cases of cyber-attacks on crypto exchanges have been attributed to the growing usage of non-custodial wallets worldwide. And many investors are finding it easier to manage their crypto portfolios thanks to this new technology.
DeFi wallets which are not custodial offer better security features compared to their counterparts. This is because custodial wallets are managed on exchanges that are prime targets for hackers. As such, non-custodial crypto wallets have fewer chances of being hacked.
Here is what makes this DeFi product appealing to most crypto investors.
Better Safety Features
Non-custodial crypto wallets come with better safety features compared to custodial wallets. This is because while custodial wallets are managed by various crypto exchanges, non-custodial wallets give users total control over their crypto holdings. As such, chances of being hacked are minimal comparatively. So if you are new to crypto and worried about the safety of your investment, you may want to consider a non-custodial wallet to secure your holdings.
Easy Access
Depending on the type of technology provider you choose to store your crypto holdings, non-custodial wallets can make it easier to have total control over your investment. You can access it as you wish because you have sole control of your own keys and won’t need to rely on a third party. You have direct control over your funds and are not answerable to any individual for how you manage your wallets.
Free From Hacking
Non-custodial wallets are more difficult for hackers to find. This is because hackers target tend to target exchanges which utilize the custodial version of wallets, due to the high traffic they receive from crypto investors. While it may be challenging to retrieve access keys, should you lose them, non-custodial wallets guarantee better safety for your holdings.
Easy To Manage Your Portfolio
With this type of wallet, you can be your own bank, as it comes with advanced features that may not be available via most crypto exchanges. In addition to converting your digital currency to an asset of your choice, you can easily manage your crypto portfolio straight from your mobile devices. This gets rid of the need for third-party platforms to help you manage your trades.
Everything is centralized and they even provide important trading insights that you may utilize to improve your trades. Therefore, you not only secure and improve your trading portfolio, you also increase your chances of generating more income from your trades.
Conclusion
There are various types of crypto wallets available in the world of DeFi and cryptocurrency, and researching to ascertain which wallet is suitable for your crypto portfolio is very important.
One wallet to research and see if it’s a good fit for your investment activities is DeFix. Always complete your due diligence with any trading activity.
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