Introduction to Self-Custody of Crypto
Cryptocurrency transactions have become an integral part of our financial system. However, it is important to have self-custody of your coins instead of relying on third-party exchanges. With insolvency issues affecting millions of users, maintaining custody of your crypto by using a wallet with a seed phrase is a safer option. This eliminates the risk of withdrawal problems and insolvency issues.
Types of Cryptocurrency Wallets
Cryptocurrency wallets can be divided into two categories: hot wallets and cold wallets. A hot wallet refers to a virtual currency wallet that is accessible online and facilitates cryptocurrency transactions. A cold wallet, on the other hand, does not require an internet connection.
Best Hot Wallets for Storing Crypto
Coinbase Wallet: The main Coinbase app allows you to buy and sell crypto, exchange it for fiat currency, and transfer it to your bank account. The Coinbase wallet is a separate app that allows you to store your private keys and send, receive, and spend digital money. It supports hundreds of thousands of tokens and provides industry-leading security.
Exodus Wallet: Exodus is a cryptocurrency wallet with an incorporated decentralized cryptocurrency exchange. It offers over 235 cryptocurrencies for storage, crypto-to-crypto swaps, and peer-to-peer trading. Users have full control over their assets and private keys.
Trust Wallet: Trust Wallet is a non-custodial, multi-crypto wallet that gives users full control over their digital assets. It is free and supports over 65 blockchains along with over 4.5 million crypto assets including NFTs. It also includes access to decentralized applications.
In conclusion, self-custody of crypto is crucial for avoiding any issues related to insolvency. Using a hot wallet is an ideal solution for storing crypto as it provides accessibility and convenience for financial transactions. These hot wallets discussed above offer industry-leading security and the ability to store and manage different types of cryptocurrencies.