VARIOUS TYPES OF WALLETS REGARDING BLOCKCHAIN

Hello to everyone in this wonderful community today and on this great platform at large today and if so we give God the praise for the sustenance of life and good health.

I welcome you all to yet another beautiful day on this great community and on this wonderful platform at large. It is indeed another day to rest and a wonderful season as though we are on holiday to celebrate Salah with family and friends.

Today, I am here once again to discuss an important topic in which we began few days ago and we will continue regarding the said topic. I have titled today's discussion THE VARIOUS TYPES OF WALLETS IN DIGITAL CURRENCY.

As such, I urge you all to relax and stay put as I begin the teaching for today. I wish you all a happy reading as I begin.

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Previous, we talked about wallet and wallet security and we managed to understand the meaning of wallet in cryptocurrency and we were able to talk about how these wallets helps to save and protect one's funds in the cryptocurrency space. With that understanding we were able to give some recommendations regarding how one can protect his/her digital wallet from being jeopardized by hackers.

This now brings us to the discussion for today as though it has a connection to today's teaching.

VARIOUS WALLETS IN CRYPTOCURRENCY

We have different types of cryptocurrency wallets in the digital space and these wallets are use to safe and store cryptocurrency assets. Although we have different types of wallets and they all Custodial wallet and Non-Custodial wallet.

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CUSTODIAL WALLETS

Custodial wallets are wallets that are mostly used by certain exchanges that are built on a centralized network system. These wallets are used to safe and store digital assets. The uniqueness of the Custodial wallets is that. It is being controlled by the exchanges, and as such, they controls and take care of the wallets for their users.

The Custodial wallets are organized in such a way that it will favor those that do not fancy the idea of seed phrases. The Custodial wallets have no seed phrases or various passwords and this is very satisfactory to those who do not feel okay with passphrase. The Custodial wallets is been controlled and maintained by the centralized exchange officials.

In this case, you do not have to worry regarding keys or keeping your passphrase intact because the exchange have you covered, hence your funds are protected.

THE NON-CUSTODIAL WALLETS

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Non-Custodial wallets are wallets that do not maintain nor have charge over your digital assets as such, it provides room for passphrases and passwords through which one can access his/her assets regarding the digital currency. The Non-Custodial wallets provides what we called keys and it is with these keys that one can access his/her cryptocurrency funds.

When the passphrase regarding the Non-Custodial wallet get misplaced, it will be difficult to get your funds back and this is why it is advisable that we ought to protect and safeguard the passphrases to our wallets diligently, and as we all know, not your key, not your crypto.

Since your assets are not being maintained or controlled by a centralized exchange, it is important that you protect your funds by keeping your passphrase safe and at a location where you can always access it just incase you lose your device.

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The Non-Custodial wallet is built on a decentralized system where users are liable or are responsible for their wallets alongside the assets in the wallet. So transactions and other activities are carried out by the users having the Non-Custodial wallets. For your assets to be safe, you must keep your passphrase intact.

CONCLUSION

Custodial wallets are safeguarded and controlled by the exchange in question. They maintain your funds and also have control over it.

Here, the safety of your digital assets is cared for by the exchange in view and one do not have to worry over lost passphrase as though the idea of passphrase in Custodial wallets is eradicated, while in Non-Custodial wallet, the safety of your digital assets solely depends on how well a user protect his/her passphrase.

Thank you all for having me today. I look forward to discussing more with you all when next I am here but for now I say goodbye.