When you leave the crypto you've purchased in the custody of a centralized exchange like Coinbase or Binance, you don't technically own it. Instead, you only own an IOU for it, and that IOU is only as good as the solvency of the exchange that holds it for you.
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 — a wallet that lets you hold your assets' private keys.
Each year, we conduct an extensive review of the best non-custodial wallets available in Canada. To arrive at our picks, we review the best non-custodial wallets on the market for overall 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 options to help you weigh up which is best for your needs.
We've recently refined our list after carefully considering news about an existing Trezor wallet vulnerability, the ongoing backlash towards Ledger's private key recovery tool which has since been postponed and the recent Atomic Wallet hack.
When using non-custodial wallets, it's good practice to pair any software wallet with a hardware wallet for added security and to use multisignature protection when possible.
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.
The Trezor Model T gets our pick for best hard wallet overall wallet because it's both secure, dynamic and feature-rich.
The wallet has multisignature – or multisig – capabilities. Multisig provides an added layer of protection for Bitcoin, as multiple stakeholders must sign off on transactions.
And the device's large, colorful touch screen makes signing off on transactions easy.
Of the self-custody wallets we compared, no other device provided this level of security alongside such a broad range of features.
The Trezor Model T also supports Taproot — an upgrade to the privacy of the Bitcoin network. It also reduces transaction fees and allows users to engage with BTC smart contracts.
You can also utilize the novel Shamir backup system with your Model T. This feature distributes your recovery phrase across multiple recovery shares, which can be stored in different locations for added security.
Finally, if you want to stake cryptos like solana (SOL) or algorand (ALGO), you can sync your device with the desktop version Exodus Wallet, which you can then use as an interface to stake up to 7 different crypto assets.
Exodus Wallet is a software wallet for desktop and mobile that provides access to a wide range of cryptocurrencies. While many wallets only let you manage coins on a single network, Exodus supports assets on blockchains including Bitcoin, Ethereum, and Solana. This all-in-one functionality makes it our top wallet pick for beginners.
The wallet has added features like a portfolio overview that help you to oversee your holdings. And if you'd like to top up your portfolio, you can use the wallet's built-in exchange to swap your digital assets.
You can also stake cryptos like Algorand (ALGO) and Cosmos (ATOM) through Exodus.
For added security, you can store the keys to your assets on a Trezor hardware wallet, making it easy to upgrade from one to the other if you decide to go pro.
One of Exodus's most beginner-friendly features is its highly-responsive support staff. If you email them for support, you can expect to hear back within an hour.
The NGRAVE ZERO is a non-custodial crypto hardware wallet with an EAL7 rating — the highest security rating such a device can earn.
One of those features is the wallet's multisignature — or multisig — capabilities. Multisig provides an added layer of protection for Bitcoin, as multiple stakeholders must sign off on any transactions.
It's fully air-gapped and allows you to securely store the private keys to digital assets like bitcoin (BTC), ether (ETH), and MATIC as well as ERC-20 or MultiversX (ESDT) tokens offline 100% of the time.
When you want to sign crypto transactions, you use the device in conjunction with the NGRAVE LIQUID app, which is available for both Android and iOS devices.
Downsides to the device include the fact that you can't use it to stake assets or to interact with DeFi protocols, and it doesn't support some popular cryptos including cardano (ADA) or polkadot (DOT).
The Coinbase Wallet doesn't require a Coinbase account to use it but verified account holders can connect directly to Coinbase's exchange to buy crypto. This seamless integration makes it our pick for the best non-custodial exchange wallet.
The Coinbase Wallet can be downloaded as a mobile app or browser extension and features an easy-to-navigate UI consistent with the Coinbase exchange. The wallet is automatically configured to support many blockchains, including all EVM-compatible chains and Solana.
Security on the Coinbase wallet is consistent with the industry standard for non-custodial wallets, which means it does come with some counterparty risk. If convenience and easy access to your funds on Coinbase is important to you, then this exchange wallet has a lot to offer.
With over 30 million monthly active users at the time of writing, MetaMask is a crowd favourite and considered the go to for Web3 apps, making it an easy choice for best non-custodial Web3 wallet.
MetaMask was one of the first non-custodial wallets to help open the door to the world of Web3 and DeFi. Operating on both desktop and mobile devices, MetaMask lets you connect to dApps, store NFTs and digital assets and trade cryptos across several different blockchains.
A key feature behind the popularity of MetaMask's Web3 wallet is the ability to buy and sell cryptos without providing any personal information. To start trading on DeFi exchanges you simply install the app or browser extension and log in using your private seed phrase.
Your MetaMask seed phrase acts as a password, login and proof of ownership all in one. Your information is not stored on any database and asset ownership is entirely in your hands; an important element of decentralisation.
As a specialist Bitcoin cold storage wallet, the COLDCARD Mk4 doesn't have as many of the features of Ledger or Trezor devices, but it does keep the private keys to your BTC stored securely offline.
The COLDCARD Mk4 was created by cypherpunks — technologists who advocate for privacy-enhancing cryptography — for Bitcoin maximalists.
The COLDCARD Mk4 uses not one but two Secure Element chips — the same type of chip found in passports and credit cards — to protect the private keys to your Bitcoin.
Using the Sparrow Wallet desktop software and a microSD card, you can send Bitcoin to and from your COLDCARD Mk4 without ever plugging the device in. The obvious downside to this is that you'll have to purchase a microSD card adapter for your computer if you plan to transfer data this way.
Sparrow is a Bitcoin-only desktop wallet that offers various functionalities.
You can either use it exclusively as a hot wallet, or you can use it as an interface for a hardware wallet. It works great with a wallet like the COLDCARD Mk4.
If you're an advanced Bitcoiner, you can also use Sparrow to create a multisig (short for multisignature) vault, which requires multiple parties or devices to sign off on Bitcoin transactions. Multisig vaults provide extra protection for the bitcoin you HODL.
Also, Sparrow lets you connect to any Bitcoin node that you may be running.
However you use Sparrow, its capabilities combined with its clean and simple interface make it a go-to for any level of Bitcoin enthusiast.
The Ledger Nano S Plus can be used to stake a variety of crypto assets.
You can use the native Ledger Live interface with any Ledger hardware wallet to stake 9 different cryptos – including ether (ETH) and solana (SOL).
To stake an even greater assortment of digital assets, you can sync your Nano S Plus hardware wallet with third-party apps like MetaMask or Yoroi and use these software wallets as a bridge to staking interfaces.
However, please note that there's risk involved with using third-party apps in the decentralized finance (DeFi) space. Malicious code was recently introduced into the software that allows DeFi protocols to connect to Ledger wallets, resulting in $484,000 worth of Ledger users' digital assets being stolen.
No assets that were staked via Ledger Live — without third-party software — were impacted.
Also, keep in mind that Ledger's software is closed-source. This means that it's not open to independent scrutiny, and you must place some degree of trust in the manufacturer.
The Ledger Nano X is a USB-style hardware wallet that's Bluetooth enabled and can be used in conjunction with either Android or iOS mobile devices.
This makes it a great travel companion, as it allows you to carry with you the private keys to 5,500 crypto assets as well as NFTs.
And you can stake up to 9 crypto assets using the device's native software — Ledger Live — which is available for both desktop and mobile devices.
Mind you, while Ledger devices have not had any recorded security breaches, the software is closed-source. This means that it is not open to independent scrutiny, and you must place some degree of trust in the manufacturer.
XDEFI is a blockchain-agnostic wallet that lets you showcase NFTs from more than 30 different blockchains side-by-side. It's this breadth that's made it our top pick if you're looking for a dedicated non-custodial NFT wallet.
The wallet's streamlined, cross-chain UI makes sending, receiving and trading NFTs and cryptos across blockchains simple and user-friendly.
Once the browser extension is installed, accounts can be set up directly in XDEFI or imported from external wallets. Preconfigured blockchains include ETH, BNB Chain, Arbitrum, Thorchain, Bitcoin and more.
XDEFI also gives you the ability to complete in-wallet swaps and purchase cryptos using any currency through its fiat onramp.
Holders of the wallet's own token, XDEFI, can stake their holdings to earn trading rebates and collect utility NFTs.
We chose to give Billfoldl an honourable mention as the best recovery phrase backup device because it helps protect your chosen hardware wallet's recovery phrase from fire, flooding and any type of decay.
Most hardware wallets will prompt you to write down your recovery phrase on a sheet of paper when you set up your wallet. But if your recovery phrase sheet gets damaged or lost, you can lose access to your crypto – permanently.
Billfodl is a solid steel case that allows you to stamp your 24-word recovery phrase using metal tiles engraved with letters.
The tiles slide into three different rows on both sides of the device, and the device comes with a cover that swivels over your recovery phrase once you've properly arranged the tiles.
It's worth considering the added layer of security and peace of mind afforded by recovery phrase backup devices like Billfodl if you invest in a hardware wallet.
A non-custodial wallet is a crypto wallet that you use to store the private keys to the digital assets that you own.
A common misconception about non-custodial wallets is that your digital assets are stored in the wallet. This isn't the case, though. The wallet stores your private keys to your digital assets, which are stored on blockchains.
You'll know you are using a non-custodial wallet if you've written down a 12- to 24-word seed phrase – sometimes called a recovery phrase – for the wallet when you set it up.
This seed phrase is what you would use to recover your wallet in the event that you ever lost the physical device and needed to recover the private keys stored in the wallet.
Some non-custodial wallets are software wallets, which remain connected to the internet at all times. Examples of non-custodial software wallets include Exodus Wallet and MetaMask.
Other non-custodial wallets are hardware wallets, which remain mostly disconnected from the internet. These wallets include Ledger, Trezor and COLDCARD devices. You only connect them when you need to use the wallet.
The offline storage of private keys that hardware wallets provide is sometimes called cold storage.
A private key is sometimes referred to as a secret key.
Private keys are long, randomly generated strings of letters and numbers that cannot easily be guessed. They can be used to access cryptographically encoded information when paired with a public key counterpart.
Private keys should be stored securely in secret locations.
The following are some differences between custodial and non-custodial wallets.
| Custodial wallets | Non-custodial wallets |
|---|---|
|
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You'll know that you are using a non-custodial wallet if you've written down a 12- to 24-word seed phrase – or recovery phrase – when setting up the wallet.
If you weren't prompted to write down such a phrase, then you are 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.
A wallet should have an intuitive and easy-to-use interface, making it accessible to both beginners and experienced users. The ability to store and manage a variety of cryptocurrencies is crucial, as the crypto market consists of numerous digital assets. A good wallet should provide a reliable backup and recovery system to protect against data loss or theft of the wallet's private keys. Access to transaction history and reporting features is essential for tracking your cryptocurrency holdings and activities.
Paul Levy
Senior Lecturer, University of Brighton
Interoperability with web3-enabled sites is probably the most important feature after security for crypto wallets today. WalletConnect makes it possible to use a wide range of wallets to interact with web3 sites. Cross-chain compatibility and the ability to do swaps inside the wallet can also make life a lot easier.
Ruadhan O
Creator, Seasonal Tokens
The wallet should be easy to use and navigate. Users should be able to easily send, receive, and store their cryptocurrencies. The wallet should support the cryptocurrencies that users want to use. Multi-signature wallets require multiple signatures to authorize transactions. This makes them more secure than single-signature wallets.Cold storage wallets allow users to store their cryptocurrencies offline. This is the most secure way to store cryptocurrencies, as it protects them from hackers. Some crypto wallets offer additional features, such as staking, lending, and decentralized exchange (DEX) integration.
Mitesh Shah
Founder & CEO, Omnia Markets
Consider the following risks in using a non-custodial wallet:
If you choose to take personal responsibility for the private keys to the digital assets you've purchased, you'll need to learn how to use a non-custodial wallet.
Taking self-custody of the private keys to your digital assets can be an empowering experience, but it's important to do your research to choose the non-custodial wallet that's best for you.
You'll need to consider a number of factors like whether you'd like to use a software or hardware wallet as well as which features you'd like your non-custodial wallet to have.
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.
To evaluate our 2024 picks for the best non-custodial wallets, we compared wallets on a range of criteria, including the following:
James Edwards is the global cryptocurrency editor at Finder. He is a regular contributor to Nasdaq and is frequently called upon for market commentary in Australia and abroad.
Yes, non-custodial wallets can be hacked.
Software wallets are susceptible to common attacks such as phishing scams like any other internet-connected service.
No user's hardware wallet has ever been successfully hacked, but research has proven that there have been hackable flaws in the designs of some earlier iterations of hardware wallets.
The safest non-custodial wallets tend to be crypto hardware wallets, as they remain mostly disconnected from the internet.
Coinbase offers both custodial and non-custodial wallets to its customers.
The exchange's custodial wallet is the wallet that the exchange provides to you automatically when you purchase digital assets via the Coinbase exchange.
Coinbase's non-custodial wallet is a browser extension product called Coinbase Wallet.
Unlike when you use its exchange service, Coinbase Wallet will prompt you to write down a 12- to 24-word seed phrase.
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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