Types of wallets for managing digital assets.

1. Centralised (Custodial) — your cryptocurrencies are stored at centralised service/exchanger — the same as keeping cryptocurrencies in the bank.

As the custodial crypto wallet owns private keys with full access to clients’ crypto assets, funds do not belong to users.

In addition, a crypto exchange is a legal organisation that is obliged to obey the law and the requirements of law enforcement agencies. At the request, the exchange can both provide customer data and freeze funds in the wallet.

An unpleasant moment can also be the lack of access to assets during technical work, since the custodian can, if necessary, disable access for users.

2. Personal (Non-custodial) — you are the only owner of cryptocurrencies. No one can block your account, enter the restrictions, or cancel the transaction.

In contrast to the previous type, users retain full control over the assets in non-custodial crypto wallet by not handing their private keys to anyone, and hence are fully responsible for the safety.

This category of wallets provides users with quick access to decentralised finance (DeFi) protocols, Web 3.0, and NFT markets.

Non-custodial wallets support another level of user authentication with a seed phrase — a unique sequence of 12 or 24 words only for the owner of a blockchain address that serves as a password to restore access to the address or transfer it to another wallet.

Being faithful to the ideals of truly decentralised finance, non-custodial wallet built-into INKA Finance multi-chain platform allows crypto investors to access DeFi protocols from various blockchains in a convenient and secure manner.

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