For anyone involved in cryptocurrency, secure asset storage is one of the most important concerns. This is especially critical for businesses, as companies are responsible not only for their own funds but also for those entrusted to them by clients.
There are several best practices for safeguarding crypto assets, and one of the key recommendations is to use a crypto wallet non custodial or self custodial. In this article, we’ll explore what makes non-custodial solutions stand out.
What is a crypto wallet self custodial?
This is a type of crypto wallet that gives the user full control over their assets. The private keys needed to authorise transactions are stored exclusively on the user’s device and are never shared with third parties.
The easiest way to see the difference between custodial and non-custodial wallets is to think of them as safes. The keys to a non-custodial safe are held only by you. The manufacturer and building staff have no copies and no access, meaning they can’t open it under any circumstances.
In contrast, custodial safes are accessible by third parties who hold the keys. In this case, you’re at the mercy of the institution managing the safe, and your assets could potentially be stolen or frozen without warning.
This is why custodial solutions—such as exchange accounts—are not suited for long-term or secure storage of cryptocurrency. They are designed more for day-to-day asset management and trading.
Self custodial crypto wallet: benefits
- You have full control over how and when your funds are used.
- They’re extremely difficult to hack—provided your seed phrase is stored securely.
- No need to complete identity checks and share personal data.
- You interact directly with the blockchain—no middlemen involved.
That said, there’s a catch: the responsibility for asset security lies entirely with you. A forgetful exchange user who loses access to their login details can usually restore their account via email. But if a non-custodial wallet owner forgets their password and loses their seed-phrase, their crypto is gone for good—with no way to retrieve it.
Quick note: A seed-phrase is a string of randomly generated words that appears when you first set up a non-custodial wallet. It allows you to restore access to your funds using another wallet that supports the technology.
How to choose the right self custodial crypto wallet
It all depends on your goals. A wallet built for personal use will likely fall short of business needs. It may lack essential features such as API integration with your website, trading platform, or CRM system. You might not be able to install the software on your own server, create sub-wallets, or manage crypto finances effectively. Businesses should focus on solutions specifically designed for enterprise use.
It’s also worth considering what you’ll use cryptocurrency for:
- For long-term storage, cold wallets are best—they’re never connected to the internet.
- For faster, day-to-day access, hot non-custodial wallets are good.
- Custodial options can be used for trading on exchanges, but you should never store more on them than you’re willing to lose.