A popular adage in crypto is:
"Not your keys, not your coins"
This implies that users who have no control of their tokens' private keys don't have control of what should rightly be their assets.
Private keys are passphrases that prove ownership of crypto assets are generated randomly when creating a new wallet. They can be compared to PIN codes in traditional finance that grants access to funds held in a bank account.
Without them, a user cannot withdraw or transfer funds. While there are many crypto wallets one can use, not all providers give absolute control of private keys, and thus funds.
Non-Custodial Wallets vs. Custodial Wallets
Custodial wallets offered by centralized exchanges like Binance or Coinbase do not give users the freedom to hold their wallets' private keys.
While custodial wallets have played a part in making crypto adoption easier, they may not be the safest options. They are centralized, and users only have the right to initiate and approve transactions.
On the other hand, non-custodial wallets are decentralized. These wallets allow users to fully own and control their assets. Wallet and token owners can safely store their private keys and recover their wallets in case of glitches. Because of this, users are also in charge of private keys' safety. If you are concerned about decentralization and security of funds in your wallet, a non-custodial wallet will be the best option.
Best Non-Custodial Wallets in 2022
Here are the best non-custodial wallets you can use in 2022.
MetaMask is a non-custodial browser wallet native to Ethereum, a smart contracting platform. It allows users to store tokens, including NFTs, and act as an interface for several blockchains besides Ethereum, including Polygon. MetaMask is secure, enabling users to store, buy, swap, and send supported tokens and NFTs. It can be freely downloaded from various browser wallets like Firefox, Brave, Chrome, Microsoft Edge, and more. As of June 2022, over 30 million users used the wallet to explore blockchains and interact with DeFi, gaming, NFTs, metaverse, and other on-chain protocols.
Trust wallet is one of the best non-custodial wallets to use in 2022. The platform has over 25 million users worldwide. It is secure and decentralized and can be used to track the prices of cryptocurrencies. The wallet can be used to buy and store ERC20, ERC721, BEP2, and BEP20 tokens. In addition to being a wallet for storing cryptocurrencies, Trust Wallet has integration with on/off-ramp services that enable users to purchase cryptocurrencies using fiat currencies. It is also perfect for storing non-fungible tokens (NFTs).
The Daedalus wallet is a non-custodial desktop wallet by IOHK, the lead development team behind Cardano,that's free for everyone to use. It is available for Windows, Linux, and OS devices. The wallet was launched the day Cardano went live. The Daedulus wallet comes fully bundled with the Cardano full node. It is thus the safest option for storing ADA, the native cryptocurrency of the Cardano blockchain. Daedalus is easy to set up once downloaded and great for simple storage and transferring tokens but not connecting to dApps. As a security measure, token private keys are encrypted straight in the user's computer, inaccessible to third parties.
GameChanger is a self-custody crypto wallet available on mobile and desktop. What distinguishes the wallet is its gamified approach to token storage and security. It supports the tokens and NFTs, complete with an in-built NFT creator. The creators of the non-custodial wallet are keen on promoting adoption while focusing on ease of use and simplifying coding requirements. The wallet has a feature that makes it easy for developers to build dApps for Cardano. The wallet is also lightweight, meaning it doesn't store the whole history of the Cardano blockchain. At the same time, the GameChanger wallet allows users to access Cardano testnet environments.
The Guarda wallet is available on desktop, mobile, and web, supporting a wide range of assets, including non-fungible tokens (NFTs) on Ethereum. It is a secure non-custodial wallet whose code has been approved by Etherscan, a blockchain analytic platform. Additionally, Guarda has a feature enabling users to purchase over 50 assets, take crypto loans, and stake select cryptocurrencies offering up to 40 percent in yields. Guarda also supports platform generation of Hedera--a cryptocurrency network--and Ethereum fungible tokens. Upon generation, these tokens are immediately listed on Uniswap, a decentralized exchange on Uniswap.
Ledger Live is native to Ledger and is an interface that allows token holders to quickly manage their assets, including top cryptocurrencies like BTC and ADA, NFTs, and DeFi tokens. It is tailored specifically for connecting via the Ledger Nano hardware wallet. The Ledger Live app can be downloaded and installed on desktop or mobile and enables users to freely access a variety of DeFi, crypto, and NFT services such as swapping, trading, staking, and more, directly from their non-custodial Ledger wallet, bypassing the security risk of Blind Signing.
Yoroi is a lightweight wallet on desktop and mobile for Cardano and Ergo blockchains. It is a product of Emurgo but built by IOHK, emphasizing speed, ease of use, and security. Yoroi also packs several features. Some include an NFT gallery, fiat or crypto on-ramp, and a dApp connector that permits multi-asset transactions. The dApp connector is a bridge for interaction between users and various dApps on the Cardano blockchain.
NuFi is a Cardano-based non-custodial wallet that supports several operations, including staking and cross-chain trading of cryptocurrencies native to Cardano, Solana, and Flow blockchains. Besides storing cryptocurrencies, NuFi supports staking of NFTs and has an NFT gallery, optimized for viewing listed assets. Using their dApp connector browser extension, users can connect to supported NFT marketplaces, DEXs, and more. NuFi is also compatible with several hardware wallets like Ledger and Trezor.
The non-custodial wallet provides an interface for exploring the Cardano blockchain, enabling the storing of ADA, Cardano native tokens, including NFTs. The platform is free to use and is available as a browser extension on Google Chrome, Brave Browser, and Internet Explorer. ADA holders can also delegate directly to Cardano Stake Pool operators, that is, validators, from the wallet. However, as a note, it is recommended not to download and run Nami and Daedalus/Yoroi wallets simultaneously. Nami is open source, has a dApp connector therefore enabling smooth connection with most-if not all--smart contracting platforms on Cardano. Nami receives part of its development funds from Cardano's Project Catalyst.
Which is the Best Non-Custodial Wallet?
Thanks to all the fantastic innovations, crypto users can choose the best or even use a combination of wallets to access different blockchains. Still, users may choose different best-decentralized wallets for different devices, e.g, Daedalus on their PC and Eternl on their mobile, depending on their needs. Some wallets have a better user interface than others, while others may be more compatible with NFTs and multi-chain trading.