Crypto wallets are more than just storage boxes where you hold your crypto assets; they are simply the tool through which a user can access their funds on the blockchain and initiate crypto transactions.

Crypto Wallets can be anything from accounts on centralized exchanges to hardware (cold) wallets, and they are designed to present a record of your account and holdings on the decentralized ledger in a comprehensive interface.

There are two principal components of a crypto wallet: A public Key and

A private key

A public key is effectively the address of your crypto wallet, comprising a mixture of alphabets and numbers. Hence, it is a public-facing alphanumeric data point that could be likened to your home address, which is used to receive inbound cryptocurrencies and encrypt outbound transaction data. To fund a wallet with cryptocurrency, just enter the public key as the deposit address.

A private key proves one's ownership over any funds held in the wallet. Just like you wouldn’t want a stranger having access to your front door key, you don’t want anyone to possess your private key. This is because any outside person who gains access to a wallet’s private key can effectively take over the assets in the wallet as well as totally move the funds elsewhere. And unlike conventional bank transfers, there’s no way of reversing the transaction without altering the blockchain – something that is almost never possible in the Blockchain industry.

So in order to send coins through the blockchain network, these two keys are used together. The user must first enter the public key (that is, the wallet address which the asset is to be transferred to) and then confirm the transaction by entering its own private key. Once the public and private keys have been entered correctly, the wallet broadcasts the transaction to the network, attaching the recipient's public address to the coins to complete the transfer.

Crypto Wallets are of 2 Types:

Custodial wallets and

Non-custodial wallets.

Custodial wallets are digital wallet services provided by a central institution, such an exchange for cryptocurrencies. Because of their approach to user asset management, centralized exchanges are also referred to as custodial exchanges. They create a hub for selected assets and allow users to swap between these assets regardless of the asset type or parent blockchain, without requiring a bridge/middleman.

Sending coins out of a custodial wallet simply involves the user having to log in to the platform with a username and password, input the public key of the location to where they wish to send coins, and the business is responsible for inputting the private key to complete the transaction.

This is an extremely easy process for the user, however accompanied by an additional layer of risk to the wallet/transaction. Examples of popular crypto exchanges include Finance, Coinbase, OkEX etc.

Non-custodial wallets on the other hand, take the form of software wallets that can be installed on smartphones, personal computers, browser extensions or specialized hardware devices.

Mobile crypto wallets enable holders to securely send or receive funds from their phones provided there’s an internet connection. They are convenient, easy to navigate and allow users to perform transactions from the comfort of their devices.

Desktop wallets are usually lightweight, easy-to-use applications that are efficient for securely conducting small, everyday crypto transactions right from your computer.

Web wallets are an important point of convergence between wallets and exchanges. A wallet that allows you to handle your money right from your web browser is created for you when you open an account with a cryptocurrency exchange.

As far as cryptocurrency storage goes, hardware wallets, sometimes referred to as cold wallets, are the safest options. Because of their offline nature and reduced susceptibility to phishing and other hazards as a result of frequent use, they receive high security ratings. A compact user interface on hardware wallets allows users to carry out simple tasks. Hardware wallets are shaped like storage drives.

Hardware wallets can, if necessary, be connected to other gadgets, such as a PC. Ledger and Trezor are two very popular hardware wallets and they also offer users the option to connect to their respective wallets’ applications to engage in additional activities like staking.

The Ledger Nano X allows the addition of up to a hundred crypto dApps and has Bluetooth features for connecting the hardware device to mobile devices. In contrast, Nano S doesn’t have Bluetooth features and supports the addition of only three DApps.

Navigating the vast landscape of non-custodial wallets can be challenging, but we’ve got you covered. Listed below are the best 10 mobile non-custodial wallets of 2024:

MetaMask

Coinbase Wallet

Trust Wallet

MyEtherWallet

Coinomi

Exodus

BRD

Ledger Nano X

Trezor Model T

Guarda Wallet

Final thoughts

Unlike custodial wallets that involve a third party, non-custodial wallets give you full control over your private keys and assets. This distinction is crucial in the crypto world, as it aligns with the fundamental ethos of cryptocurrencies: decentralization.

It's important for users to keep in mind that coins in a non-custodial wallet are almost gone forever if the private key is lost. Misplacing one's private key can be an expensive error.

Selecting the best non-custodial wallets should consider features like security, user interface and experience.