Light (Non-custodial) wallets
These may be web, paper, mobile, desktop and hardware wallets — as is the case with custodial ones. However light (non-custodial) wallets allow you to fully control your funds and therefore are more secure.
- Web wallets — non-custodial web wallets do not keep your keys, they are stored in your browser. Such wallets as MyEtherWallet and Guarda allow you to access your account from any device, all you need to enter is your private key.
- Hardware wallets are considered to be the most secure cryptocurrency storage solution. They are physical devices, similar to flash drives that don’t have access to the Internet. Thus, hackers cannot access these wallets.
- Mobile Light wallets can be installed on a smartphone or a tablet. There are a huge number of such wallets, but you need to choose them carefully, paying attention to their security and authenticity. Before installing the wallet, be sure to read the reviews. In addition, it is recommended to download applications from the developer’s site — for example, Guarda has links to applications in the AppStore and Google Play, so you will be protected from the possibility of downloading a fake application.
- A desktop wallet is an application that is installed directly on your computer. There are many such non-custodial programs, for example, Electrum and BitGo. Choose this type of program according to the cryptocurrency you need to store, and the operating system. You can use this wallet only when you are connected to the Internet. But since the keys are stored on the computer itself, there is a possibility of theft if the fraudster takes physical possession of your computer.
- Paper wallets mean that you print your public and private keys on a piece of paper. Thus, the cryptocurrency is stored offline, but you can always connect to the network from any device and enter your keys. Storing the cryptocurrency on paper is like keeping money in cash under the bed.
So the custodial wallet is the easiest way to use cryptocurrency and does not require any knowledge from the user, but it is very unsafe. If you plan to store large amounts of money, it is better to choose a light (non-custodial) wallet.