Are there any risks associated with using non-custodial wallets for storing cryptocurrencies?

3 answers

• Davies MikkelsenJul 10, 2024 · a year ago
  Using non-custodial wallets for storing cryptocurrencies can come with certain risks. One of the main risks is the possibility of losing access to your funds if you forget or misplace your private keys. Unlike custodial wallets, where a third party holds your keys, non-custodial wallets give you full control over your keys. While this provides enhanced security, it also means that you are solely responsible for keeping your keys safe. Additionally, non-custodial wallets are susceptible to hacking attempts and malware attacks. It's crucial to ensure that you are using a reputable wallet and taking necessary precautions, such as using strong passwords and enabling two-factor authentication, to minimize these risks.
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• Otto SherrillDec 06, 2020 · 5 years ago
  Absolutely! Non-custodial wallets offer greater control and security, but they also come with their fair share of risks. One of the risks is the potential for human error. If you make a mistake when entering your wallet address or sending funds, there's no central authority to reverse the transaction or recover your funds. Another risk is the possibility of falling victim to phishing attacks. Scammers may create fake wallet websites or apps to trick users into revealing their private keys or seed phrases. It's essential to double-check the authenticity of the wallet provider and be cautious of any suspicious links or requests for personal information.
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• Tammam R RahhalFeb 28, 2023 · 2 years ago
  As a representative of BYDFi, I can assure you that non-custodial wallets do have their risks. While they provide users with complete control over their funds, there's always a chance of losing access to your wallet if you forget your private keys or fail to back them up properly. It's crucial to understand the responsibility that comes with using non-custodial wallets and take necessary precautions to protect your assets. BYDFi recommends using hardware wallets or secure offline storage options for added security. Remember, it's better to be safe than sorry when it comes to safeguarding your cryptocurrencies.
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