Wallets

A crypto wallet is a digital tool for storing, sending, and receiving digital assets like tokens and collectibles. It also serves as an interface for interacting with applications on a blockchain network, such as marketplaces, decentralized finance (DeFi) platforms, prediction markets, games, and more. With a wallet, you can sign in to these applications, manage your assets, and keep your tokens and credentials under your control. There are several types of crypto wallets, each offering different features and levels of security.

Non-custodial wallets give users complete control over their private keys and, therefore, their funds. Unlike custodial wallets, which rely on third parties, non-custodial wallets allow users to independently manage and secure their assets. Non-custodial wallets come in various forms, including mobile wallets like Family and browser extensions like MetaMask, and are popular among users who prioritize autonomy and direct control over their digital assets.

Custodial wallets are managed by a third party, such as a cryptocurrency exchange or financial service provider, which holds and secures the user's private keys on their behalf. However, since the custodian controls access to the assets, users must trust the third party to safeguard their funds.

Cold wallets are not connected to the internet, offering enhanced security but less convenience for daily use. Common cold storage options include hardware wallets, which are physical devices that store private keys offline, such as Ledger or Trezor, and paper wallets.

Multi-signature wallets require multiple private keys to authorize a transaction, providing an extra layer of security. They are often used by businesses or groups needing shared control over assets, such as with Safe.