When dealing with Crypto stuffs, the first question to ask yourself is what type of crypto wallet should I use?
Choosing a crypto wallet depends on your needs. Security, custodianship, and interacting with smart contracts are vital points to consider. You also may want to access your wallet on different devices.
MetaMask, MathWallet, and Binance Chain Wallet are good options for browser extension wallets. If you prefer a mobile experience, MetaMask, MathWallet, Trust Wallet, and SafePal are available for iOS and Android. They’re decentralised and store your private key on your device.
SafePal also offers a cold storage hardware wallet for anyone looking for the highest security. Apart from the hardware version, all crypto wallets mentioned are free to use.
Types of Wallets
1. Custodial:
The wallet provider holds your private key. This is the case with your digital assets in an exchange wallet.
Without owning your private key, you aren’t entirely in control of your wallet. Likely, you won’t be able to connect to DApps either.
For example, a custodial wallet is a reasonable choice if you are on crypto assets to trade BSC tokens and other crypto assets. But be careful.
While this is safe to do on Binance, you should not trust your funds to any custodial wallet or exchange.
2. Non-custodial:
You own your private keys. It’s the safest option for most traders and investors, as long as they take good care of their keys and seed phrases.
The wallets we’ll cover later are all non-custodial options that allow you to interact with DApps.
3. Hot wallets:
These crypto wallets are connected to the internet and are typically non-custodial (unless you’re using a centralised exchange).
Hot wallets are convenient for making transactions but come with some security risks. Your private key is held online with your public key and is usually accessible with a user-set password.
Like any password-protected service, you could be hacked or phished. You should also use two-factor authentication (2FA) methods to mitigate the risks.
4. Cold wallet:
You store your private key offline on specialised hardware. This option is the most secure way to hold your BSC tokens, but it’s often the most impractical method for making transactions and interacting with DApps.