The so-called “non-custodial” crypto wallets are probably the best way to store your cryptocurrencies for the long term.
In fact, they are the only tool we have to be the sole owners and exclusive custodians of the private keys, or seeds, which are necessary to use our crypto tokens.
In other words, from this perspective, they are absolutely the safest solution, at least in theory, as they completely and fundamentally eliminate the issue of having to entrust your tokens to a third-party custodian.
However, this does not mean they are risk-free, because while they eliminate the risk associated with a third-party custodian, they introduce another risk, namely the potential improper storage of the seed or private keys. For instance, in the event of theft or loss of the seed, there is a serious risk of completely losing access to one’s funds, in an absolutely irreversible manner.
However, for instance, they absolutely do not allow anyone to freeze or seize the funds stored within them, and they do not require KYC (identity verification).
In this regard, before proceeding with the analysis of the best non-custodial wallets currently available worldwide, it is advisable to add some tips specifically concerning the security of their use.
First of all, you should never share your seed or private keys with anyone, for any reason. Additionally, they must be stored in a way that ensures they can never be discovered by anyone, such as writing them on paper and keeping them in a safe.
Finally, one must always ensure that their non-custodial wallets use updated software and/or firmware sourced only from official channels.
At this point, it is necessary to introduce a distinction.
Hardware or Software
There are indeed two major distinct categories of non-custodial wallets: those based on hardware (the so-called hardware wallets), and those based solely on software to be installed on an existing device.
Hardware wallets, in fact, are standalone devices that are used by connecting them to a computer or sometimes to an app on a smartphone.
They have the advantage of being completely disconnected from the network when not in use. This significantly enhances their security.
Additionally, they hide the private keys, making them neither visible nor accessible to anyone, even when connected, thus making it impossible to seize them: only those with physical access to the device can use them.
Obviously, they always require the secure and proper custody of the seed, because if someone knows the seed of a hardware wallet, they could still access all the private keys (and therefore the funds) from other devices as well.
Instead, software wallets are, as the name suggests, software (also known as apps or programs) that are installed on a device (computer or smartphone), effectively granting access to the private keys to anyone who can control that device, potentially even remotely. Furthermore, if the device is constantly connected to the network, in theory, they could be continuously exposed to attacks.
It should be noted, however, that they are generally very secure if you choose the right ones and keep them updated, provided, as usual, that you store the seed and private keys with extreme care and in the correct manner.
Moreover, software wallets are almost always free, whereas hardware wallets always come with a cost, as they require the purchase of a physical device. In this regard, it is strongly recommended to purchase them only and exclusively from official retailers, namely the same manufacturing companies, and not from generic e-commerce platforms.
MetaMask
Most likely, the most widely used non-custodial crypto wallet is MetaMask.
This is a software wallet compatible with Ethereum and EVM-compatible chains (Arbitrum, BSC, Avalanche, etc.). Recently, it has also added support for Bitcoin.
It is used by millions of people, particularly for DeFi and NFTs.
It is primarily available as a browser extension for use on a computer. However, it also exists as a smartphone app, and by using the same seed, you can have the identical wallet on both your smartphone and computer.
It is developed and managed by Consensys, one of the leading blockchain software companies, specifically focused on Ethereum.
It has a fairly intuitive interface, although not the simplest for beginners to use, and it especially boasts excellent support for dApps.
Trust Wallet
Another highly utilized non-custodial software wallet is Trust Wallet.
Compared to MetaMask, it has a significant advantage: it supports hundreds of chains and several thousand tokens, even those that are not EVM-compatible (for example, it has natively supported Bitcoin from the beginning).
It also has other advantages, such as integrated staking, and the ability to make direct cryptocurrency purchases using fiat currencies.
The drawback is that the browser version is not as comprehensive as MetaMask’s, and indeed it is primarily used as a smartphone app.
It is noteworthy that it is developed and managed by Binance, the largest crypto exchange in the world, and this is likely a significant factor contributing to its enormous success.
There are also hundreds of other software wallets, particularly those specifically dedicated to other chains, such as Phantom for Solana.
Ledger
Absolutely, the most famous and widely used non-custodial crypto hardware wallet is the Ledger.
To be precise, Ledger is just the name of the company that manufactures them, while the exact name of the device is Nano X. In fact, Ledger also produces other devices, but the Nano X is by far the most used.
It supports many chains and thousands of cryptos, and it is particularly appreciated for its Ledger Live app, which allows for native staking, for example.
Additionally, it features Bluetooth connectivity, allowing it to easily interact with apps on smartphones.
However, it has a single flaw, although many do not consider it as such. In fact, its underlying software code is closed-source, meaning it is hidden. Without the ability to analyze it, it is not possible to uncover potential bugs or security vulnerabilities, although, to be fair, none have been found in the most recent versions so far.
Trezor
The main rival of Ledger among hardware wallets is Trezor.
In this case as well, Trezor is the name of the company that manufactures them, while the technical name of the device is Model T.
The main advantage of Trezor over Ledger is that its code is 100% open-source. This effectively allows anyone to personally verify how it works, in every minute technical detail, making it virtually even more secure.
Additionally, it features a colored touchscreen.
However, it turns out to have a higher cost, and above all, it natively supports slightly fewer chains.
How to Set Up a Software Wallet
The setup of a non-custodial software wallet is very simple and quick.
First, you need to download the app exclusively from the official website and through the official app stores.
Once installed, you need to open it and create a new wallet.
The only complication is having to securely save the seed. It is strongly advised against storing it in electronic format on an internet-connected device: it is better to keep it in a strictly physical format and in a location inaccessible to anyone else, such as a safe.
In addition to saving the seed, which is done only once, it is also necessary to choose an access password, which must be used every time you want to use it.
At this point, the wallet should be ready for use, although sometimes it is necessary to select the chain to use or manually add the assets you wish to utilize to the screen.
How to Set Up a Hardware Wallet
The setup of a non-custodial hardware wallet is very similar to the previous one, but with one additional step.
First and foremost, the device must be purchased, ensuring that it is bought only from official retailers (particularly the websites of the companies that manufacture them).
After starting it, you need to connect it to a device you already own, such as a computer (via USB) or a smartphone (via Bluetooth).
This also involves installing the firmware on the connected device, as well as the software with the interface to use it. In fact, it is used from the connected device, and not on the hardware wallet itself.
At this point, the procedure is identical to that of a software wallet, with the slight difference that a PIN is required instead of a password, but it is used in the same way.