Custodial wallet
A service holds the keys and provides account access. Recovery is easier, but you depend on the service rules and security.
Self-custody
Crypto wallets
Wallet types, private keys, seed phrases and a practical storage model.
Non-custodial wallet
The user controls the private keys. This provides autonomy, but losing the seed phrase may permanently remove access.
Hardware wallet
Keys are held on a separate device. It can suit long-term storage when addresses and backups are verified correctly.
A baseline storage model
- Keep a small operating balance separate from long-term funds.
- Store the seed phrase offline and never enter it on websites.
- Verify the address on the hardware-device screen, not only in the browser.
- Periodically verify that the backup is readable and accessible only to you.