Difference Between Custodial and Non-Custodial Wallet from the House of KuCoin
One of the reasons behind the success of KuCoin is the big number of Altcoins listing on their platform. This listing makes KuCoin the world’s biggest Altcoin exchange within a very short period. The main reason people join their platform is the more transparency in fees and other features they provide. Many people enter the crypto world because they need more control over their assets without the involvement of any state authorities. In this article, we also discuss the difference between Custodial and Non-Custodial wallets from the house of KuCoin.
The Bitcoin community somewhat supports the custodial wallet. In this wallet, you can keep assets to be stored by a third party rather than take care of them on your own. The removal of the third party should be explained in a Bitcoin white paper. Therefore, custodial wallets are sometimes named Bitcoin banks.
Advantages and disadvantages of Custodial wallet:
Suppose you don’t understand the various aspects of internet security. Using a custodial wallet is far better, so a third party will take care of your assets, and you never lose access. Most of the biggest exchanges also allow a custodial wallet only. Some custodial wallets also offer you a good return for holding funds for the long term. On the other hand, custodial wallets work similarly to the traditional financial system. You don’t have a key to your wallet, and the custodial wallet platform has full control over your assets.
A non-custodial wallet is simply software that gives full control to you without involving any third party. You have your private key, which means no one can control your wallet. However, always remember the more control you have comes with more responsibility in terms of security.
Advantages and disadvantages of non-Custodial wallet:
You are in more control of your assets, and no authority can easily seize your assets. You can make many transactions without any third party’s involvement. You can enable different types of securities on your own. You will become a part of the lighting network. On the other hand, you have to send your cryptocurrency to the exchange every time to start trading. It is difficult for many people to handle the user interface properly, and a little human error will cause a big security risk.
We all know that a wide range of trading pairs like BTC/USDT, ETH/USDT, ADA/USDT, and others are listed on KuCoin. Users of KuCoin always have many options open in front of them. They also find a BTC price and other data on a KuCoin site. Similarly, the main goal of KuCoin is to provide more transparency to their user. KuCoin also supports both custodial and non-custodial wallets. Due to this reason KuCoin exchange is separate from others. You always have an option to pick between them without any difficulty. The custodial wallet is powered by KuCoin security, and the non-custodial will give you full access to your assets.