What types of wallets are there?

Custodial vs non-custodial wallets: who controls your private keys, and what that means for security and convenience.

Crypto wallets come in two primary types: custodial (CeFi) and non-custodial (DeFi). The key difference is who controls the private keys—the secret used to access funds and sign transactions.

Let's break down the differences between these two types and see where MyTonWallet fits in:

🌐 Custodial Wallets

In custodial wallets, private keys are managed by a third party, such as a cryptocurrency exchange. This means that users delegate the storage and management of their assets to a trusted entity.

Key Features of Custodial Wallets

• Simplified Access Quick login using a username and password.

• KYC Verification Identity verification required for full feature access.

• AML Compliance All transactions are screened for anti-money laundering compliance.

• Fiat Support Seamless interaction with fiat currencies, without intermediaries.

Popular examples: Telegram Wallet, Crypto Bot, and others

🔐 Non-Custodial Wallets

Non-custodial wallets provide users with full control over their assets. The private keys are stored exclusively by the wallet owner, and access is secured through a seed phrase—a unique set of 12 or 24 words.

Features of Non-Custodial Wallets

• Full Control You are entirely responsible for your assets, including the security of your private keys and recovery phrase.

• Anonymity No identity verification required.

• Decentralization Manage your assets without intermediaries.

Limitations: Limited fiat functionality (e.g., direct bank withdrawals may not be supported)

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MyTonWallet is a non-custodial (DeFi) wallet. You manage your assets without intermediaries, and access is protected by a seed phrase. No KYC is required to use the wallet, so you keep more privacy and control.

MyTonWallet is a perfect choice for those who value security and complete control over their funds.