Non-custodial cryptocurrency exchanges

To fully understand non-custodial exchanges, we have to go back to the beginning.

When cryptocurrency, especially Bitcoin, was first introduced to the market, almost no one knew about it and its value was zero dollars. On January 12, 2009, the first Bitcoin exchange took place between its founder, Satoshi Nakamoto Over time, computer scientists, tech enthusiasts, and mathematicians began to notice Bitcoin and pushed the idea of ​​an exchange and a “market” to emerge.

As these exchanges grew and cryptocurrency investing became more “normal,” hackers took notice and began attacking these exchanges. For example, one of the first major exchanges Exchange of hacks It happened in 2011 when MT. Gox, which at the time was the largest Bitcoin exchange hosting 70% of all transactions, lost 25,000 Bitcoins worth almost $400,000 (in 2011). It was hacked again in 2014, this time losing $473 million!

After multiple hacks of other exchanges, the idea of ​​a non-custodial exchange was born. In this post, we will explore the difference between custodial and non-custodial exchanges and reveal the safest place to store your digital investments, away from hackers and scammers.

What is non-custodial exchange?

The simplest explanation of what a non-custodial exchange is is to simply think of it as: exchange. That’s it. Non-custodial exchange, commerce, buy And He sells Your cryptocurrency but Do not carry or store. your cryptocurrencies. Instead, it relies on you to hold your assets, either on another exchange or another wallet. Which brings us to DeFi Walletand other cold hardware wallets designed to protect your private keys and seed phrases.

As a user of a non-custodial exchange, you can log in and make any transaction you want. But the important thing is that your assets are not in the “custody” of a third-party institution, like Coinbase or Binance for example. So, if you use one of these exchanges, they control your private keys, which means that if a hacker were to compromise them, they would control your cryptocurrency.

Using a non-custodial exchange gives you the added responsibility and protection of storing this sensitive information away from online scammers. Many non-custodial exchanges also give users a KYC skip, which is a bonus. Buy and sell your bitcoin anonymouslyif you want.

But there’s still a big problem: Non-custodial wallets give you custody, sure. But are they 100% secure from hacking?

Custodial vs. Non-Custodial Exchange

Simply put, custodial wallets give custody to a third party. Non-custodial wallets give the user control. There will always be positive aspects to a custodial exchange, such as faster transaction turnover. But it is up to each user to decide what is more important: how quickly my cryptocurrency can be traded or how secure my assets are?

Continuing to play devil’s advocate, custodial exchanges also have better options and recovery capabilities. This eliminates the sole responsibility of the user in case their keys and recovery phrases are lost. However, some may argue that Using a cold wallet may be a good option for protection.While others may say that a cold hard wallet is still indestructible, like a Ledger or Trezor wallet because they are physical objects.

As you can see, there are a lot of options and a lot of opinions out there!

Bitcoin MaterialOn the other hand, it might be One of the most secure Bitcoin walletsWhy? Because A cold hardware wallet is not electronic and cannot be damaged.On the contrary, it is made of AISI 304L stainless steel, which makes it virtually indestructible. So there is no need to worry. Even if it is put in a load of laundry, your virtual assets are completely safe.

common questions

Some common questions that confused users often ask are about privacy, price, and access. Take a look at these frequently asked questions:

What if I lose my private keys?

A non-custodial exchange does not know your private keys, so losing your private keys means losing access to your funds, with no recovery option. You are better off using a hardware wallet to store this important information.

Can I switch from a custodial exchange to a non-custodial exchange?

Yes, you can switch by transferring your cryptocurrencies from the custodial exchange to your non-custodial wallet address, transferring control from the third party to you.

Are non-custodial exchanges more expensive?

Fees vary. Non-custodial exchanges may save you some fees but usually add a transaction network fee. The total costs depend on your usage and the blockchain. Using credit cards or Apple Pay also means additional fees.

Best Non-Custodial Cryptocurrency Exchanges

Let’s take another look at Best Options for Non-Custodial Wallet.

Change now

Pioneer exchange, Change now It emerged as a popular choice from the start because it was the first non-custodial exchange. Supports over 150 cryptocurrenciesOverall, it is easy to use and has an advantage over some other non-custodial exchanges because it Supports Visa and MasterCardallowing users to buy cryptocurrencies and not just trade.

✅ Pros: Provides free customer support 24/7.

❌ Cons: No instant exchanges or purchases. It can take up to 15 minutes for some exchanges to complete.

Stealth X

Given its name, Stealth X It is very serious about protecting your privacy and anonymity. It does not ask for registration information, and does not enforce KYC compliance. It supports Over 400 cryptocurrencies and also allows users to buy cryptocurrencies.It does not have its own non-custodial wallet, so you can You will need to have it separate. Non-custodial cold wallet Before the due date so that you can transfer the assets.

✅ Pros: You also have the ability to buy cryptocurrencies from the exchange via credit card, Apple Pay, or Samsung Pay.

❌ Cons: To buy cryptocurrencies, you must register your account, which results in the loss of the concept of anonymity and privacy.

Exit

A popular choice for many cryptocurrency investors, Exodus is a non-custodial wallet where users are the only ones in control of their keys and recovery phrases. Many Bitcoin and crypto enthusiasts believe that Exodus is one of the best options for a non-custodial exchange because it supports over 260 cryptocurrencies. It includes desktop software for Mac and Chrome, including a web browser extension for Chrome, as well as an app for Android and iOS.

✅ Pros: Great customer service, with a chat box available for simple inquiries and a customer service representative available 24/7 to help with more complex issues.

❌ Cons: It doesn’t offer two-factor authentication, which raises questions about its security.

Winning combination: Non-monopoly exchange and cold hardware wallet

For the best possible security, of course, using a non-custodial exchange is a great place to start. They all claim to protect your keys and give you control, unlike traditional banks. But since these exchanges, no matter which one, They are all online. For transactions, it is not as secure as it claims.

Your only bet to keep your cryptocurrencies 100% safe is to store them in a cold hardware wallet. Physical Bitcoin is a great option because it is not only a physical board that cannot be hacked but it is also the best option for a hardware wallet because it is not electronic and cannot be broken.

Check out the different options. Bitcoin Material What this service offers for USDT, Ether, and Bitcoin. Remember that if it is connected to the internet like many non-custodial exchanges, you will not be completely safe from hackers. Protect yourself and keep your cryptocurrencies in your hands.