The Benefits of Using a Self-Custody Wallet
Taking Charge of Your Digital Assets
When it comes to storing or managing your digital assets, the choice between a self-custody wallet and a custodial wallet is an important decision. While custodial wallets like Binance, Coinbase and Bundle offer convenience, self-custody wallets like Trust Wallet, Metamask and Onboard Wallet provide several advantages that give you more control, security, and privacy over your digital currencies. In this article, we'll explore the benefits of using a self-custody wallet.
Better Security: A self-custody wallet provides better security measures. You hold the private keys to your digital currencies, which are stored securely on your own device or a physical hardware wallet. A private key is an alphanumeric code used in cryptography, similar to a password. In crypto, private keys are used to authorize transactions and prove ownership of a blockchain asset. By not relying on a third party to safeguard your keys, you reduce the risk of hacking and vulnerabilities associated with centralised platforms (we'll dive deeper into private keys next week). You have complete control over your wallet's security, ensuring that your money remains safe.
Ownership and Independence: Choosing a self-custody wallet means you become the sole owner of your assets, aligning with the idea of decentralisation in cryptocurrencies. You don't have to depend on a centralised entity to store your funds. This ownership empowers you with full control over your financial decisions and reduces the risk of your money being frozen, seized, or subjected to restrictions imposed by others.
Access to Multiple Digital Currencies and Participation in Airdrops: Self-custody wallets offer users the flexibility to store and manage multiple digital currencies in a single wallet. You have the freedom to diversify your digital asset portfolio and take advantage of different investment opportunities. They also enable users to participate in airdrops and token distributions. Airdrops are when projects distribute free tokens to existing cryptocurrency holders, which can provide additional value and potential returns on your investments.
Easy Access and Global Reach: Self-custody wallets provide convenient access to your digital money from anywhere in the world as long as you have internet connection. There are no geographical limitations or reliance on traditional banking systems or exchanges. This accessibility makes self-custody wallets an ideal solution for people in areas with limited access to banking services or those who want to be part of the global digital economy.
By utilizing a self-custody wallet, you not only benefit from enhanced security, ownership, privacy, and accessibility but also gain the ability to manage multiple digital currencies and participate in airdrop opportunities. Embracing self-custody wallets is a significant step towards gaining true ownership and control over your financial future.
If you’d like to get started with self-custody wallets and need an easy one to start with, we recommend downloading Onboard Wallet. The user-friendly wallet allows you to seamlessly convert your local currency to stablecoins and vice versa within minutes. With Onboard Wallet, you can securely store your stablecoins and gain greater control over your financial assets. Take the first step towards financial empowerment and start exploring the benefits of self-custody with Onboard Wallet today.
DISCLAIMER: This newsletter is for educational purposes only and is not investment advice or a solicitation to buy or sell any assets. Please do your own research before making any investment decisions.
