5 Best Non-Custodial Crypto Wallets

Introduction

Non-Custodial Crypto Wallets: Over the years, the lack of security in crypto storage has been a significant setback due to the daily growth of vicious attackers. In 2021, investors lost nearly $14 billion, most of which was attributable to compromising the Defi protocols, according to research by Chainalysis. More people are visiting the Defi market in search of chances that could change their lives, continuing the trend from last year. 

Is it worth the risk if stakeholders are unsure how to store their digital assets safely? Before Defi’s development, most cryptocurrency investors held their holdings on centralized exchanges. But gradually, it became clear that even these custody wallets are not as secure as one might hope. Big crypto exchanges have been breached multiple times, costing millions in user funds. 

Since one has complete control over their private keys with non-custodial wallets now that Defi is a thing, astute cryptocurrency investors do.

About Non-Custodial Crypto Wallet

Self-custody wallets, sometimes called non-custodial wallets, remove the possibility of outside meddling and let individuals control their banks. Non-custodial wallets might be physical objects that resemble USBs or software programs installed on desktops or mobile devices. Hardware wallets like CoolWallet, NGRAVE, and Ledger are a few well-known instances of non-custodial wallets.

Software non-custodial crypto wallets have an internet connection, but they are password-protected and require encryption to access the private keys. Software non-custodial wallets are a practical choice for regular cryptocurrency users who need instant access to their funds, even if they theoretically run the danger of data leaks or hacking while connected to the internet.

The most often used non-custodial crypto wallets for more significant amounts of cryptocurrency are hardware wallets, also known as cold storage. Your private keys are entirely off-chain and stored in hardware wallets. Thus there is never a chance that they might be compromised. They are among the safest methods for keeping your cryptocurrencies and the most difficult to hack.

What are the top non-custodial crypto wallets available today? Software and hardware wallets fall into two categories, yet the greatest inventions in this market segment provide comparable services. It is also significant that the user interfaces of the current non-custodial wallets vary. We will highlight the top three non-custodial wallets in the following section of this post.

Metamask

One of the first non-custodial crypto wallets, Metamask boasts over 10 million monthly active users (MAUs), according to a ConsenSys report. This Defi-focused wallet requires users to download and install the official extension (add-on or plugin) as a browser plugin. Once the installation is complete, users can create a password, following which metamask will construct a 12-word backup phrase (master key) (master key).

Since then, metamask has expanded to include other ecosystems, such as the BNB chain, Avalanche, Fantom, and Polygon network, and the Ethereum blockchain, which it initially exclusively supported. If Defi users adjust their network icon while switching platforms, they can use a meta mask to keep their digital assets across these blockchain environments.

Above importantly, users of Metamask have complete control over their private keys, making it impossible for anyone to steal their money without knowing the 12-word backup phrase.

Ambire

Another non-custodial crypto wallet that is excellent for newcomers and seasoned users is Ambire. In contrast to metamask, this open-source wallet was introduced as a web application that lets users sign up using their emails. This arrangement lessens the laborious task of managing seed words, which can quickly become lost if not carefully stored. Users of Ambire have complete control over their wallets and can choose self-hosting in the interim.

Compatibility for hardware wallets, automatic fee management, built-in swaps and cross-chain transfers, and support for several networks are benefits of this non-custodial wallet (Ethereum, Avalanche, Fantom, Arbitrum, Polygon, and the BNB chain).

Regarding ecosystem governance, Ambire has a native currency called $WALLET that also serves as a tool for rewarding platform users. Holders of $WALLET can vote on new features or integrations with other Defi platforms.

Ledger Wallet

One of the most popular hardware wallets available today is Ledger; it was introduced in 2014 to meet the expanding demand for offline private key storage. Ledger wallets are by nature device-based and take the shape of USB devices. It is much more difficult for hackers to access a ledger wallet through the web than for hot (online) wallets. Given the security associated with offline storage, a significant proportion of cryptocurrency veterans keep their digital assets in the ledger wallet.

Notably, the ledger wallet comes in two different iterations: Nano S and Nano X. The former was the first to debut and offered up to 20 applications and support for several cryptocurrencies. On the other hand, the Nano X (the latest version) allows customers to manage their crypto assets from any location and supports up to 100 applications. The Trezor wallet, which also has a sizable portion of the hardware wallet industry, is the main rival of Ledger.

MyEtherWallet

An industry veteran, MyEtherWallet (MEW) caters mainly to users with a specialized experience. It is a client-side interface that is available for free and made to assist users with the Ethereum blockchain. Although a little is more technical than the other items on the list, it is straightforward.

Its utterly open source status is another factor to take into account. MEW supports other Ethereum-compatible networks like many other wallets on our list. These consist of Polygon, the BNB Chain, Ethereum Classic (ETC), and so forth.

Additionally, MEW is made to enable cross-chain swaps so that users can exchange between Ether and Bitcoin, Litecoin, or Dogecoin. If you switch directly from the interface, it collaborates with several decentralized exchange aggregators, such as 1inch, to provide the best pricing.

Coinomi

Another well-liked option with a long history is Coinomi. This multi-currency wallet is among the most established non-custodial wallets available today, having been introduced in 2014.

It supports more than 1,770 digital assets and around 125 networks, some of which can be transferred via SegWit to make transactions smaller. Users of Coinomi have direct access to dApps, numerous Web3 projects, their exchange, and direct token exchanges.

Coinomi boasts strong security measures and is accessible to a large user base from various platforms and operating systems, including Android, iOS, Windows, macOS, and Linux. It is also accessible in eight additional languages.

Advantage and Disadvantage

Advantages of non-custodial wallet

• Total command of private keys
• Interactivity with native Defi applications
• There is no KYC or other verification process.

The disadvantage of a non-custodial wallet

• Much more challenging to use than custodial solutions
• Greater risk: If you misplace or forget your seed phrase, you won’t ever be able to reaccess your funds.

Conclusion

Overall, the finest noncustodial wallets directly link you up with a noncustodial exchange or a blockchain. This gives you total control over your keys and virtually eliminates meddling from outside parties. Noncustodial storage not only makes transactions anonymous but also makes them safer from other parties. Additionally, you are free to purchase cryptocurrencies directly, which gives you access to a wider variety.