Why Self-Custodial Wallets are the Future of Cryptocurrency Security

“The future is now!!!”

Yes, the future of self-custody is now, why? Because self-custodial wallets are quickly becoming the preferred choice for those who want to increase the security of their cryptocurrency transactions. You may already have one installed on your device or may likely consider installing one after reading this short article.

In this article, we will discuss why self-custodial wallets are the future of cryptocurrency security by specifically looking at how BlockWallet is positively changing what we can get from a self-custodial crypto wallet.

What are self-custodial wallets?

A self-custodial wallet is basically a type of cryptocurrency wallet that allows users to have complete control over their own private keys. This means that the user is responsible for the security of their own funds, as opposed to a third-party custodian, such as an exchange.

The issue of trust

When you use a centralized exchange to buy and sell cryptocurrency, you are often required to trust that the exchange will keep your funds safe. This trust is not always well-placed, as there have been numerous instances of exchanges being hacked or funds said to be mismanaged resulting in the loss of millions of dollars worth of cryptocurrency. The FTX unfolding saga is one good recent example.

Self-custodial wallets, on the other hand, like BlockWallet eliminates the need to trust a third party. When you hold your own private keys, you are responsible for the security of your own funds. This means that you are not vulnerable to hacking or other types of security breaches that can happen to centralized exchanges. In other words, with self-custodial wallets, you are in control of your own funds and you don’t have to rely on anyone else to keep them safe. In other to keep users safe from possible phishing attempts, BlockWallet offers phishing protection.

Your privacy matters

When you use a centralized exchange, you are often required to provide personal information in order to set up an account with full access to funds, such as:

1. email,
2. phone number,
3. name,
4. address, etc.

Such information provided can be used to track you and your transactions, and can even be sold to third parties. However, with a self-custodial wallet like BlockWallet you are not required to provide any personal information, which means that your transactions are much more private. This is a crucial aspect of self-custodial wallets, as it allows users to remain anonymous while still being able to participate in the cryptocurrency market.

“with a self-custodial wallet like BlockWallet you are not required to provide any personal information”

Unmatched Speed and convenience

BlockWallet provides greater flexibility in terms of transaction speed and convenience because you have complete control over your own funds, which means that you can make transactions at any time, without needing to wait for approval from a third party. Why is this a big deal? Because when you use a centralized exchange, you are usually at the mercy of the exchange’s policies and procedures. This can mean that you have to wait for approval before making a transaction, or that you are limited in the types of transactions that you can make.

In addition, BlockWallet also offers users the ability to avoid paying more for trade on an AMM (automated market marker) dex by introducing a built-in flashbot/sandwich protection feature.