Cryptocurrency assets cannot be kept in a bank, on a computer, or in your own pocket. The only way to store them is in special digital wallets or crypto wallets. At the same time, it is crucial to understand that crypto wallets do not physically hold cryptocurrencies. A crypto wallet is just a good way to store a private key. Simply put, the cryptocurrency is stored not in the wallet but in the blockchain.
There are many types of such storage. They can be hardware, desktop, mobile, or even paper. In addition, they can be hot and cold, that is, with or without an Internet connection. But regardless of the type of wallet, it will always be either custodial or non-custodial. Custodial crypto storage is a wallet where private keys are stored and managed by a third party on your behalf. The owner of such a wallet does not have full control over his funds. A non-custodial wallet is a way of storing public and private keys so that only the owner has access to them.
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What are Custodial and Non-Custodial Exchange Services?
Online exchanges also operate according to the principle described above. They are also custodial and non-custodial. Custodial exchanges allow users to easily buy and sell cryptocurrencies such as Bitcoin, Ethereum, and so on. They store assets and private keys on behalf of the user, which greatly simplifies the buying and selling process.
Non-custodial crypto exchanges do not store user coins. Only the user has access to his funds; accordingly, he is responsible for them. The owner himself manages crypto keys and processes transactions.
The most important advantage of non-custodial exchanges over custodial platforms is security. It is difficult for attackers to gain access to sensitive information about funds since it is stored exclusively on the user’s device. One of the best examples of a non-custodial service is LetsExchange. You can easily swap BUSD to BTC or other cryptocurrencies without risk.
Custodial services are less secure. The platforms store a huge amount of sensitive information used to manage the custodial wallet. If someone manages to break into the vault of such a company, your private and public keys can be stolen.
Read about other advantages of non-custodial platforms below.
Key Benefits of Non-Custodial Platforms
By choosing non-custodial services, clients receive a number of significant advantages, including:
- Complete confidentiality when making transactions;
- Full control over your cryptocurrency, flexible management;
- Access to various advanced non-storage features.
How to Swap Coins on Non-Custodial Platforms?
Interest in cryptocurrency exchange is relevant for different users of the crypto industry: miners (for withdrawing earned money into fiat), traders, and investors (for withdrawing from the exchange platform). A person who has never dealt with this area may also need to buy cryptocurrency. For example, an online store can only accept certain coins or stablecoins (USDT, BUSD, etc.) as payment.
In fact, the process of exchanging coins online is very simple. It takes only a few minutes and often does not even require the registration of a personal account. First, you need to decide on the choice of a trustworthy online crypto exchange. Then determine which coins you will change and in what amount. It is important to carefully fill in the appropriate fields and follow the detailed instructions.
Here is an example step-by-step exchange process:
- The choice of a platform;
- The choice of the direction of interest;
- Filling in payment details and contact information;
- Transfer of funds to the specified details;
- Completion of the exchange and verification of receipt of funds.
If you have any concerns, please get in touch with the support service. It will help to carry out the exchange operation. Registering an account is recommended to receive discounts and other benefits.