What is a Non-Custodial Crypto Wallet?
A non-custodial wallet is a type of Blockchain-driven solution stored on your server; it lets you make and accept crypto payments. Being the only entity that owns the private keys for your wallet, you can suspend any third parties from accessing it.
BitHide is one of the famous software examples for a non-custodial wallet. Its key advantages are exceptional privacy and security. Moreover, it is designed for corporate use. It is an excellent business solution for businesses that would like to accept coins.
Let's investigate what other characteristics distinguish non-custodial wallets from custodial ones. The comparison is made only for software solutions.
Custodial vs.Non-custodial Wallets
Unlike a non-custodial wallet, a custodial one is a crypto wallet with a private key stored on third-party servers. It means instead of full ownership over your keys, you only permit to make the payment or accept funds. This is because the third party owns the transaction data, not you.
Let's compare a custodial vs non-custodial crypto wallet, how they differ and what unites them. For a better understanding, let's review how non-custodial wallets work using the example of BitHide.
For a custodial wallet, third parties keep data and a private key. In contrast, a non-custodial wallet owner is the only owner of the transaction data and a private key to access it.
BitHide example: the software doesn't store any private information on its servers. A user keeps everything apart.
The private key and the transaction data in custodial wallets are under third-party control. So, these third parties are obligated to share your data for KYC/AML verification if requested. Non-custodial wallets do not share this data, so it is more protected.
BitHide example: this feature is the strongest value proposition of BitHide. Our wallet is one of the most secure solutions on the market. First, like other non-custodial wallets, it stores data on your private server so that you can eliminate KYC/AML verifications. Second, with the Dark Wing technology, no one can ever detect your physical address.
The more parties have access to your private keys, the higher risk of data breaches. This means that non-custodial wallets with only the data owner, you, are more protected from data breaches than custodial ones.
BitHide example: Unfortunately, the only reason for a data breach here is you. You can authorize the wrong person with accessive rights or insufficiently protect your servers. BitHide itself has never experienced any data breaches.
Non-custodial wallets don't need third-party approval for the funds' withdrawal. This process in this type of solution is much easier than at custodial wallets. Mainly, it is reflected in the ability to make instant withdrawals.
BitHide example: BitHide moved on with the realization of its withdrawal feature. Apart from the instant withdrawal, it allows users to auto-withdraw funds based on a set of triggers and even use an API for this process.
Risks of Using a Non-Custodial Wallet
Although non-custodial wallets grant their users more security, there are still some drawbacks a user can face:
Loss of private keys
If a user loses their private keys, they will not be able to access their funds.
Phishing attacks
Users can be targeted by phishing attacks, where they are tricked into giving away their private keys.
Complexity
Non-custodial wallets can be more complex than custodial wallets. It is especially relevant for less technically-savvy individuals.
Lack of insurance
Unlike custodial wallets, non-custodial wallets are less insured. It means that here users are responsible for safeguarding their funds.
How to Choose the Best Non-custodial Wallet
- Type of the wallet (software/hardware): businesses usually need software wallets to connect them to their app/platforms
- Privacy: important for both private and corporate needs
- Security: important for both private and corporate needs
- KYC/AML compliance: more important for business needs to prevent any regulatory issues with your account
- Crypto-address verification: more important for business needs. Companies have more transactions to verify.
- Auto and API-withdrawal: it may be important for businesses to cut withdrawal-associated costs. Moreover, it is to automate the withdrawal process.
- Points of sales: necessary for businesses using crypto at their points of sales
- Invoicing: necessary for businesses to generate multiple invoices and identify the payers
- Crypto-exchange: optional for businesses working worldwide and requiring to exchange their coins
- Bank card connection: optional both for private and corporate needs
- Backup/restore functionality: optional both for private and corporate needs
- Notifications: optional both for private and corporate needs
- Availability of coins: optional both for private and corporate needs
- Multi-merchant functionality: required functionality for businesses running multiple merchants
- Accounting functionality: required functionality for businesses
- Associated fees
So, once you point out what parameters are worth your attention, you select the wallets that fit most of your needs. In the case of BitHide, most of the above-mentioned points are covered.
What is the Best Non-custodial Crypto Wallet?
When it comes to the best non custodial crypto wallet, there couldn't be only one option because it depends on the parameters you need. Are you looking for a software solution with exceptional privacy and security? Requiring a user-friendly interface? BitHide is the preferred option. So, let's explore the wallet's characteristics that allowed it to stand out on the market.
BitHide Non-Custodial Wallet
A lot of users are misled by the thought that crypto wallets are private by default because of being built on top of blockchain. Actually, it's not the truth. Third parties like governmental institutions or so can access most of the wallets on request. They can do checkups on the wallet's structure or revenue source.
BitHide keeps your data private even in such cases.
How can BitHide assure data privacy?
This is a single-in-its-kind solution that uses the Dark Wing technology to guarantee the privacy of your data. First, the VPN technology allows the wallet access to blockchain nodes. However, if necessary, third parties can still identify the physical address of such a wallet. BitHide keeps your wallet's privacy with the TOR technology. The latter works simultaneously with the VPN protection. This tech makes your physical address untraceable for any institution.
Being a non-custodial crypto wallet, BitHide can be run exclusively on your private servers. This means that, on the one hand, you can experience some installation difficulties compared to a custodial solution. However, on the other hand, only you are the owner of your transaction data and private keys.
Non-custodial solution users can complain about the difficulties of safeguarding their private keys. People are just afraid of losing the keys. However, it's an eternal problem of privacy and convenience.
Another challenge raised by the users of non-custodial wallets is what if their servers will fail. The developers of BitHide decided to be one step ahead in this question. With BitHide, you can make a safe backup and restore the transaction data if any problems with your server pop up.
As it has already been said, to use BitHide, you need to install this software on your servers. This means both a solution and data kept by this software are under your ownership, and no third parties can access it. Even for KYC/AML checkups.
To learn more, let's now discover how these validations operate.
KYC (Know Your Customer) and AML (Anti-Money Laundering) are compliance procedures. Financial institutions and regulated companies must run these procedures to prevent illegal activities. These procedure are aimed to verify the identity of customers. Also, they can monitor transactions for suspicious activity.
In the case of custodial wallets, third parties are obligated to share the wallet details for KYC/AML verification. This is only when it is officially demanded. And blockchain technology designed for keeping decentralized data cannot circumvent these requirements.
BitHide not only hides your wallet's address with the Dark Wing technology but doesn't include any third parties that can share your data. This means only you decide whether to correspond to the KYC/AML compliance policies.
You never know the source of funds you accept, which means that suspicious transactions may jeopardize your wallet. With BitHide, you may be assured that everything will be fine.
The software will identify suspicious transactions and separate them from your main revenue flow. This way, your main account will remain impeccable.
At the same time, such an action won't endanger your funds' withdrawal. This means you can withdraw funds from your main account and additional account separately anytime.
Benefits of a Non-Custodial Wallet from Bithide
It is possible to set up a range of triggers for the auto-withdrawal of your funds. The most popular options are associated with the exact weekday and time or a certain amount of money earned. BitHide looks over the fluctuation of the blockchain fee associated with the fund withdrawal. The solution enables to withdraw funds wherever the fee has the lowest level. This way, you can considerably cut your withdrawal costs.
You will enjoy this feature if you run multiple businesses and need to keep all your coins on one account. BitHide allows you to add as many businesses as you need and manage all the funds from one account.
This means you don't need to create and support multiple wallets for each of your businesses. In addition, you don't have the headache with your multiple wallet verifications. BitHide serves all your needs and guarantees the privacy and security of your data and funds. All you need to start is installing this software, connecting it to your businesses, and accepting coins on your apps or platforms.
As a solution for corporate needs, BitHide simplifies your operations significantly. Moreover, the wallet lessens the amount of time required for accounting.
First, BitHide enables multi-business accounts, meaning you need to manage only one instead of many. Second, the software allows accountants to analyze revenue flows separately for different merchants. A pivot table for your entire group is also possible. Third, BitHide uses a user-friendly approach to its software. As a result, BitHide's accounting functionality is easy to understand and easy to use. And finally, BitHide enables you to create different reports. Use pivot reports for all merchants and separate reports for each business you join so that all information needed is on hand.
Another advantage of BitHide associated with its corporate destiny is that it enables multi-roles. BitHide's developers laid the foundation for adding different access levels for various roles. This allows to address the challenges growing companies.
This means you can assign a role to as many people as you wish.
Also, this feature enables you to distinguish the rights of people responsible for different businesses. Employees working on your platform X won't have any access to the numbers generated by your application Y.
Then, you can assign view/edit functionality for any parameter to any role, which means that a person A can only view some data, for instance. In contrast, person B can edit it, and person C won't have access to this data.
Features of Bithide Non-Custodial Wallet
For companies that need their branding of the wallet, BitHide gives such an opportunity. After installing BitHide and setting up its account, you can brand the wallet in accordance with your brand book. Moreover, for multi-merchant accounts, BitHide allows the creation of different branding options.
This functionality makes BitHide an excellent alternative for the long-term development of the custom non-custodial wallet. BitHide provides all the functionality required for a successful business operation and makes it look like your internal solution.
Some users of non-custodial wallets complain that they are less user-friendly than custodial ones. BitHide is not the same. One person can do the installation and setup processes for BitHide within one working day. After that, you can enjoy accepting cryptocurrencies.
The software interface is well-organized so that even a newbie can navigate there quickly and confidently.
Having a variety of unique features that are non-typical for non-custodial wallets, BitHide can efficiently serve different businesses. Of course, the grey-hat domains like gambling, casino, forex brokers, CFD brokers, or exchanges can benefit from BitHide's privacy and security level. However, all the companies that care about their image, reputation, and privacy can profit from BitHide, too.
Pros and Cons of Non-Custodial Wallets
So, let's sum up the advantages and disadvantages of non-custodial wallets.
With a non-custodial wallet, only its owner has full control over their private keys. This means they have complete control over their funds, this may cause some cons, though. These cons include the loss of a private key equivalent to your funds' loss and possible phishing attacks to know your private key.
For sure, there are no drawbacks to the unprecedented security of your funds. If you select a wallet, remember to pay attention to whether it's developed according to the security standards. Many wallets don't even have a two-factor authentification. This can signal the software's vulnerability to be hacked.
If you understand that you need a non-custodial wallet but still ought to decide what exact software to choose, try using BitHide now. It will take less than one working day to complete the setup process, and already today, you will be able to enjoy its benefits.
TRY BITHIDE NOWFAQ
How do I get a non-custodial crypto wallet?
The easiest option to get non-custodial crypto wallets is to select the most appropriate ready-made solution. Then, you only install it on your servers and enjoy the usage. If you need more clarity about what option to choose, consider BitHide. It's a non-custodial crypto wallet providing one of the highest levels of privacy on the market. With BitHide, you can start using the software the same day upon its installation. Both private and corporate usage is possible.
What is the difference between custodial and non-custodial cryptocurrency services?
Custodial and non-custodial cryptocurrency services refer to the way in which they store and manage private keys.Custodial services refer to those where a third party, such as an exchange or a bank, holds the private keys for the user. This means that the user cannot control their funds and must trust the custodian to keep their assets safe and accessible.Non-custodial services, on the other hand, refer to those where the user holds their private keys. This means that the user is in complete control of their funds, and the service provider does not have access to them.Non-custodial services, on the other hand, refer to those where the user holds their private keys. This means that the user is in complete control of their funds, and the service provider does not have access to them.In general, non-custodial services provide users with greater security and fund control. They also require the user to take on more responsibility for safeguarding their private keys. Custodial services are generally considered less secure and confidential. Meanwhile, they are more user-friendly and convenient for less technically savvy people.With BitHide, you can enjoy the privacy and security of a non-custodial crypto wallet. Still, it has convenience and interface inherent in a custodial service.
How non-custodial wallet works?
A non-custodial wallet is a cryptocurrency wallet where the user holds the private keys to their funds. This means that the user completely controls their own funds rather than having a third party hold and control them.To use a non-custodial wallet, you need to install it on your servers, connect your platform or app, and start accepting cryptocurrency. If you choose software like BitHide, the whole installation and setup process takes no longer than a few hours.
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