Many crypto investors are interested in secure coin storage. Keeping them on exchanges or depositing tokens on TonyBet UK or other platforms using regular wallets is not safe. Storing them on your PC is also not safe: no one has cancelled the problems with your hardware. To withdraw coins to your personal account, and most importantly, to do it safely, you need a non-custodial wallet. Here is how it works. 

What Are Crypto Wallets and How They Work

To work with cryptocurrencies, you need special software, a wallet built into the software, exchange, or hardware infrastructure. With it, users can work with the blockchain, creating transactions, for which they receive transfers of coins to their wallet.

Each wallet has its private and public key that gives it access.

• The public key is a publicly available character set used when sending coins to a wallet.
• The private character set is protected by cryptography. It is a hexadecimal number of 256 bits or 32 bytes, created to sign transactions. It is virtually impossible to hack, and the signed transfer, once approved on the Web, is sent to the addressee.

Wallet Types

Cryptocurrencies are basically divided into two types:

• Custodial: represented by exchanges where keys are generated, or separate programs. Wallet users do not get access to the data, since each key is located on the developer’s servers – this condition significantly limits the ability to manage their assets and does not guarantee their safety.
• Non-custodial: the principal difference from the previous type is the decentralization of keys, with the data belonging to the users themselves.

Non-custodial wallets also have their classification. But it is rather conditional, because the main difference between them is the method of connection. Here are their types:

• Paper wallets. For secure storage of cryptocurrencies, access keys are printed on paper and integrated into the online wallet.
• Web wallets. Most popular among novice traders and usually located on the sites of cryptocurrency exchanges. They allow you to store any coins, as well as to sell and transfer them to other users. Web wallets are valued for their convenience and speed of transactions, as transactions can be accessed anywhere in the world through a browser. However, this provokes the main problem of such storages – poor protection against hacker attacks and infection by viruses and other malicious software that allow stealing money from accounts.
• Software-based wallets. These can be mobile or desktop, which are downloaded directly to your device. These wallets are adapted directly for transactions.

Security of Non-custodial Wallets

The use of non-custodial wallets is completely legal, as well as legally and financially secure. By storing keys directly with users, the possibility of data leakage from centralized storage is eliminated.