5 Gründe für die Wahl nicht freiheitsentziehende Wallet

Sep 09, 2019

5 Reasons to Choose a Non-Custodial Wallet

With all the benefits that cryptocurrencies bring and bring into our lives, they are not deprived of some risky points that you have in mind as a future holder of coins. Roughly talked about, all of these properties should be reduced to a feature that can keep the security of your fund. Whatever currency you buy, security will largely depend on the precautions you take, and one of the most important is to choose where to save your money.

There are basically two types of purses. In a nutshell, custodial wallets store your private keys on a server, while without freedom wallets you can stay in full control of your money. Now let's take a close look at their differences.

1. Only you have access to your money

The first major difference is that your key is stored. and mnemonic seeds are necessary to access your wallet in an emergency. If you choose custodial storage, it will keep your keys on the server and you only need a login and password to access the wallet.

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As simple as it seems to be compared to entering private keys, trusting a third party with your personal information isn't the safest way to save the funds. On the other hand, a non-deprived wallet (for example) encrypts and stores the private keys only on the user's device so that no one else is able to access the money.

2. Custody free and instant withdrawals

Trusting a third party with your private information means that any action you wish to take on your fund should be confirmed by that third party. In this sense, freedom wallets are similar to traditional banks, where business could take up to a week because you need approval from every step, however small it may be. In contrast, with Atomic as a non-custodial wallet, you will be able to perform withdrawals immediately, making the process much easier and faster. No matter whether you want to send money to your friend or practice trade, you will be able to send money as soon as you make a decision.

3. Your funds are secure

There are many possible force majeure threats, and one of them is an opportunity to freeze your wealth due to KYC requirements (Know Your Customer). Exchange platforms are required to comply with legal regulations and governments or other authorities have every right to request additional information for users in their area of ​​responsibility.

KYC procedures typically take up to three days, but the bank has the right to request information if a transaction appears suspicious. Another consequence of the trusting freedom platforms with your fund is that the process of maintenance could freeze all of the assets held on the platform. Exchanges take care of user funds and their security. This is why your crypto can be frozen if you send it over the exchange. In the event you just keep crypto in your wallet that has no control over your money and your private keys, nothing will happen under any circumstances.

4. No hacking threat

Another potential threat to your freedom wallets is a hacking option. Centralized exchanges have a huge database of users and they save their funds in cold and warm purses. Cold wallets seem to many hackers not an easy target due to the requirement of multiple confirmations to access the money. However, there are still many examples of theft of funds due to security breaches on such platforms. Most often there is hacking which is a way of warm storage.

For example, in 2014, the Japanese Mt. Gox exchange, which at that time was hosting 70% of all Bitcoin transactions, was hacked, and successively the users were robbed of over $ 450 million. Thus, custodial platforms cannot protect you with the highest level of security due to their centralized model. In contrast, Atomic stores your private keys and codes access to them, which is known as one of the safest storage options today. Even if a hacker attack takes place, your wallet will stay safe and sound because it will be stored on the personal device in your home.

5. 100% fork ready

After all, freedom purses are vulnerable should a fork happen. One of the most recent examples is the case of the fork: its implementation has left numerous platforms and exchanges such as Coinbase without access to the fund, and its customers cannot send and receive coins if the platform allows transactions. Later, when BCH portfolios went live, users had to wait until it was implemented on the platform. On the other hand, without freedom wallets because of the hard fork have no trouble. Continuing with the example of BCH, users of non-supervisory wallets were able to access their funds despite the fork.

Learn lessons

When you choose between a variety of purses available today, consider the safety of your funds in the first place. In short, store portfolio folders, the funds on a central server, and the customers with a login and password. As simple as it looks, a user might not be able to access their money without the platform's approval, which happens in cases of KYC, maintenance, or even a hard fork. On the other hand, non-custodial wallets provide you with full control over your funds. All in all, with, without liberty wallets like Atomic have proven to be the best with the software that you install on your device and then use to your advantage its storage option because in that case, you are the only person with access to it. Anyway