October 26, 2022
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0The Best Custodial Wallets List
Complaints are often made against custodial wallets in the field of cryptocurrencies. They are considered a solution that is not suitable for a serious user. But there are those for whom they are well suited and can help them to understand how cryptocurrency works.
A custodial wallet is the simplest solution for a novice user and will not distract them with unnecessary complexities.
Let’s consider what a custodial wallet means, for whom they will be convenient, and which best custodial wallets list to choose from the many available options.
The best no-KYC crypto exchange is here.
What is a custodial wallet?
A custodial wallet is similar in principle to an account opened with a bank. The money belongs to the user but is stored in an institution that has control over it. The custodian may block the account or even go bankrupt and not return the coins.
The keys to the custodial wallet are stored on a centralized server. If it stops working or is attacked, there is a risk of losing access to cryptocurrency. Also, the user of such a wallet may be banned for violating the rules and not allowed to withdraw cryptocurrency.
In return, the user receives ease of operation, a friendly interface, and no need to be responsible for their own money. The support team of the custodial service will help restore the password and take care of the technical part of security.
Are you searching for the best crypto wallets? Find out the most suitable one for you here.
Differences between a custodial and non-custodial crypto wallet
Custodial and non-custodial wallets differ in their approach to storing cryptocurrencies. A custodial wallet implies the presence of a custodian, a third-party that stores the user’s keys at its facilities. In the case of a non-custodial wallet, the user himself is responsible for the safety of the keys. No one but the user can dispose of the coins.
Both custodial and non-custodial crypto wallets offer exchange functions, cryptocurrency purchases, and user support.
Custodial wallets have several advantages for which they are chosen.
- Easier to work with. A custodial crypto wallet does not require installation, generation, and storage of keys. They are designed for maximum accessibility for novice users.
- They do not allow you to make a critical mistake and lose money. Losing the key to a non-custodial wallet can lead to the permanent loss of money. No one can physically recover a code phrase of 12-24 words. The lost password from the custodial crypto wallet can be returned through the support service.
- They are started by default. When registering on a cryptocurrency exchange or other service, the user automatically receives his wallet. There is no need to choose and compare options.
- Convenient for beginners. The custodial wallet is suitable for those who do not work with large volumes yet and are only studying the field of cryptocurrencies.
- It is safe in some moments. You can link a mobile phone to such a wallet for additional confirmation of entry or transactions.
The most promising Polkadot cryptocurrency wallets are here.
But there are many disadvantages, which is why experienced users prefer not to store large amounts in them.
- Control over the money belongs to a third party. This leads to the possibility of your account being banned and your coins on it blocked. This may happen due to a violation of the rules or a change in the service policy.
- More frequent break-ins. Many exchanges and other platforms storing users’ coins have been hacked. In some cases, this led to the loss of hundreds of millions of dollars of customers’ money, which was not always returned.
- Accountability to governments and regulators. Exchanges that store users’ money themselves often have to shut down their work and leave individual countries. In some, they are not allowed to work at all. Non-custodial wallets in such cases remain the only way to work with cryptocurrency.
- So far, custodial activity is poorly regulated. Almost no country has protection for users who store cryptocurrency on third-party services. It is impossible to legally file a claim if the custodian behaves dishonestly and refuses to return assets.
If you do not keep large amounts in such a wallet or use it only for one-time payments, then these disadvantages can be leveled.
Trezor vs. Ledger: which to choose? Read our comparison here.
Custodial wallets list
An old custodial crypto wallet that has been operating since 2011. According to its team, Blockchain.com has more than 15 million users who have conducted transactions worth $1 trillion. It was created by a blockchain company that operates in Luxembourg.
The wallet has a built-in cryptocurrency exchange. There are four fiat currencies and margin trading available on it. Bitcoin (BTC), Bitcoin Cash (BACK), and other popular altcoins are supported.
In the security center at Blockchain.com there are many ways to protect your account and create backups. There are functions for setting the desired transaction fee. The service is a partner of major cryptocurrency exchanges, its users can quickly replenish accounts and withdraw money from the balance.
The service conducts analytics of leading blockchains on hash rate, mining complexity, transaction fees, block sizes, capitalization, and trading volumes.
CoinPayments supports transactions with more than 2,000 cryptocurrencies. During its operation it has become a payment gateway for large companies: among its partners are Shopify, WooCommerce, OpenCart, and Magento. From the wallet balance, you can buy clothes, airline tickets, and gaming goods, as well as invest in jewelry.
CoinPayments has a cryptocurrency depository that allows you to lock your coins for an arbitrary period. There is a function for the automatic sending of payments. A separate version is offered for business users.
In addition to the web version, you can use the smartphone app. In it, the cryptocurrency is also stored according to the custodial principle.
A simple custodial crypto wallet with support for the 100 most popular coins. The list is constantly updated with new cryptocurrencies. On Freewallet, you can conduct free transactions between wallet users.
The wallet supports the installation of user fees for transactions and multiple signatures for operations. Coins can be protected by two-factor authentication, PIN code installation, and fingerprint login.
Cryptocurrency on Freewallet can be purchased using a bank card. It provides its own integrated crypto exchange. The wallet has a simple, intuitive interface and a nice design. It is well suited for novice users.
Crypto exchange, custodial service, and international payment system in one place. It works with large cryptocurrencies and fiat currencies. Payeer works with popular payment systems in the CIS such as Y.money, Qiwi, mobile operator balances. With them, the purchase of cryptocurrency occurs instantly.
The commission for deposits and withdrawals varies from 0 to 5%, depending on the direction. The exchange takes place with a low commission of 0.95%. You can send money by mobile phone number or e-mail address. In addition to the website, Payeer has an app.
The disadvantage is the limitation on the volume of operations and some functions without verification. For full use, you will have to confirm your identity. But all custodial services are available without it.
Payeer can work as a payment gateway for accepting payments on the site. At the same time, cryptocurrencies are automatically converted into fiat money.
A large payment system that simultaneously offers custodial transactions. On it, you can quickly buy and sell cryptocurrency for traditional currencies. Advcash positions its wallet as a tool for easy work with crypto exchanges. You can use it to top up your account on any trading platform, and you can conclude exchanges on it.
The service is an official partner of Binance, and part of the exchange’s functions are integrated into the Advcash interface. The service also declares its cooperation with Huobi, OCX, Ku Coin, and others.
Cryptocurrency deposits have been implemented, for which stablecoins can be used. They pay 4%-8% per annum with daily accrual of interest on the custodial crypto wallet. You can order a debit card linked to your wallet balance from Advcash.
The largest cryptocurrency exchange, the balance of which is a custodial wallet. Its users have access to the richest functionality of the platform: trading, exchanging, buying, and selling coins, futures, staking, and almost all possible ways of using digital currency.
It is possible to make transactions with fiat currencies and bank cards. The coins of traders and investors are protected by two-factor authorization and an SMS key. It offers a very functional mobile application.
A serious disadvantage of the exchange is mandatory certification. Users from some countries are subject to restrictions on the amount of money in the account. The exchange is not available in some jurisdictions. There are rules by which it can block the user along with the money in the account – but this only applies to serious violations.
Read more about Binance safety here.
The second exchange in terms of trading volumes after Binance. It also provides a wide list of functions for cryptocurrencies stored on the balance sheet. More than 300 coins are supported, and there is an opportunity to receive passive income on cryptocurrency on the balance. There are advanced functions for the investment portfolio, detailed charts, and alerts when the price reaches certain levels.
In FTX, cryptocurrency can be invested in other instruments — derivatives of securities, NFT tokens, cryptocurrency futures, and options. It is possible to link a bank card and buy coins from its balance.
The exchange has an application with the full functionality of the FTX platform. It can be used as a mobile wallet.
