Ledger Nano S Plus Wallet
We’ve scoured the market to find the best non-custodial wallet in Canada, reviewing products for safety, functionality, cost and supported digital assets—including coins, tokens and NFTs. The safest non-custodial wallets are hardware wallets, but we’ve included a range of self-custodial options to help you decide which is best for your needs.
This is not an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade or use any services.
Also known as a self-custodial wallet, a non-custodial wallet is a digital or physical device used to store the private keys to your crypto or other digital assets. If you lose the wallet, you can recover your private keys using a 12- to 24-word seed phrase (recovery phrase).
A common misconception is that digital assets are stored in non-custodial wallets. In fact, digital assets are stored on blockchains, and a wallet stores your private keys to these assets.
Some non-custodial wallets are software wallets, which remain connected to the internet at all times. Examples of non-custodial software wallets include Exodus and MetaMask.
Other non-custodial wallets are hardware wallets, which are disconnected from the internet (offline) when not in use. Examples include wallets made by Trezor, Ledger and COLDCARD. Storing private keys offline is sometimes referred to as cold storage.
When you leave your crypto in the custody of a centralized exchange like Coinbase or Kraken, you don’t technically own it. Instead, you own an IOU for it, and that IOU is only as good as the solvency of the exchange that holds it for you.
Crypto has a chequered history when it comes to insolvent exchanges, including high profile cases like FTX and BlockFi. While security has improved over time, there will always be a risk associated with leaving your crypto on an exchange.
To actually take ownership of the digital assets you’ve purchased, you have to move the assets from the custody of an exchange to a non-custodial wallet, which lets you hold the private keys to your assets.
If the best non-custodial wallet you’ve found is a software wallet, it’s good practice to pair it with a hardware wallet for added security and to use multisig protection if possible.
Sometimes referred to as secret keys, private keys are long, randomly generated strings of letters and numbers that cannot easily be guessed. When paired with a specific public key, a private key is used to access cryptographically encoded information.
Private keys should be stored securely in secret locations.
Here are the key differences between a custodial and non-custodial wallet.
You know you’re using a non-custodial wallet if you had to write down a 12- to 24-word seed phrase—sometimes called a recovery phrase—when you set up the wallet. If you weren’t prompted to write down such a phrase, then you’re using a custodial wallet and the private keys to your digital assets aren’t in your control.
There are a number of factors to consider when choosing the best non-custodial wallet for your needs.
Consider the following risks of using a non-custodial wallet:
Taking self-custody of the private keys to your digital assets can be empowering, but it comes with responsibility. It’s important to do your research to choose the bets non-custodial wallet for your needs. Consider cost, supported cryptos, additional features and whether you’d like a software or hardware wallet.
By building a deeper understanding of secure digital asset storage and comparing a number of the best crypto wallets on the market, you’ll be in a better position to keep your crypto investments safe.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.
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