Are there any risks associated with non custodial wallets in the world of digital assets?

5 answers

• Dec 16, 2021 · 3 years ago
  Using non custodial wallets in the world of digital assets 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 and can help you recover them, non custodial wallets put the responsibility solely on the user. It's important to keep your private keys safe and backed up to avoid this risk.
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• Dec 16, 2021 · 3 years ago
  Non custodial wallets can also be vulnerable to hacking attempts. Since these wallets are usually connected to the internet, they can be targeted by hackers who are looking to steal digital assets. It's crucial to choose a reputable wallet provider and take necessary security measures, such as enabling two-factor authentication and keeping your software up to date, to minimize the risk of hacking.
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• Dec 16, 2021 · 3 years ago
  As a representative of BYDFi, I can assure you that our non custodial wallet prioritizes security and takes measures to protect users' assets. However, it's important to note that no wallet is completely immune to risks. Users should always exercise caution and follow best practices to ensure the safety of their digital assets.
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• Dec 16, 2021 · 3 years ago
  Apart from the risks mentioned above, non custodial wallets can also be subject to user errors. For example, if you mistakenly send funds to the wrong address or fall victim to a phishing scam, it can result in permanent loss of your assets. It's crucial to double-check addresses and be vigilant against phishing attempts to mitigate this risk.
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• Dec 16, 2021 · 3 years ago
  While non custodial wallets offer greater control and privacy over your digital assets, it's important to weigh the risks and benefits before using them. If you're not confident in managing your own private keys or taking necessary security measures, it might be safer to opt for a custodial wallet provided by a reputable exchange or platform.
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