& Non-Custodial Wallets
With Rise Wallet, you can embark on the worthwhile journey of self-custody.
The benefits of self-custody range from convenient to essential depending on your financial situation and physical location and as a result, crypto's role widely varies depending on whether you're in a developed, emerging, or frontier nation.
In any case, Rise Wallet will be there to support you.
When you open and fund a crypto account on a centralized exchange you’re creating a custodial wallet and trusting that the exchange will grant you access to your funds as they are in the custody of your keys. As we’ve seen time and again – with even the biggest, most regulated centralized exchanges (Coinbase, Binance, Gemini, Voyager, Robinhood) – when the volatility picks up, users are often unable to place any trades or withdraw their capital.
Non-custodial wallets are blockchain accounts that remove the need for an intermediary like an exchange. They can serve many purposes and they're primarily used as a decentralized bank and/or investment account. Assets within a non-custodial wallet remain on a blockchain at all times and if proper safety measures are practiced, you and only you will have access to the assets within it.
This is made possible with the use of public key-private key cryptography and mnemonic phrases.
It's important to note that you can access a near infinite amount of blockchain accounts/wallets from a single mnemonic phrase.
When using non-custodial wallets, your capital is accessible as long as the blockchain it's on is working. If you want to trade digital assets like tokens, NFTs, or on-chain perpetual futures contracts, you do so with a digital wallet.
Digital wallets are what connect you to blockchains and web3.
If the country you live in has a failing currency and experiences consistent bank runs, you can securely store stablecoins like USDC that retain value while not being infringed by intermediaries like untrustworthy regional banks or brokers.
- If you lose your mnemonic/recovery phrase for a wallet, you lose access to the funds in that wallet and no one can recover them for you.
That's it, but that's a lot. It's imperative that you safeguard your digital assets. You can do so by following best practices and continuing to learn about digital security.