How To Keep Your Crypto Safe: Introduction To Non Custodial Wallets
In this Web3TV interview we talk to the CEO of Thred, Kazi Hossain about how to keep your crypto safe. Kazi answers the most commonly asked questions people are asking in regards to non-custodial crypto wallets and which one you should be using on your Web3 journey.
What is a non- custodial wallet and, what’s the purpose of it?
A non- custodial wallet is when you have sole, control of your private keys, which in turn control your cryptocurrency and prove the funds are yours. The purpose of it is that you always maintain control of your crypto.
So what does encrypted mean?
Encrypted essentially means it’s jumbling up your keys with you know, numerals or characters or mix and matching the patterns of your keys so that an outsider looking in will not be able to interpret your keys. It looks like gibberish essentially to any kind of program. It’s just another layer of security that’s added so that an angel hack can’t identify the password.
How is a crypto wallet different to a bank account?
With the bank account, there’s the bank that can stop you from withdrawing, such as the banks in Lebanon. They’ve actually put in place limits on how much you can withdraw from your money from your bank account and that’s created a lot of mistrust.
So a wallet or a a non- custodial wallet really gives the power back to the individual. They can put their own money in and do whatever they want with it, free of any control or restriction.
What are the brands of non- custodial wallets and where would you find them?
You can do a simple google search of non custodial, wallets. For example, Metamasks is a non custodial wallet, I believe blockchain.com is a non- custodial wallet, and you could find them right there in their websites.
Do non-custodial wallets have any function apart from being a cryptocurrency wallet?
Most wallets are just wallets that store crypto in them and transact in crypto. So that’s a wallet in it’s in its form currently which is why with Thred, we are trying to innovate and we’ve created the super wallet.
How Is Thred Wallet Different to Other Non-Custodial Wallets?
With Thred Wallet you have a single point of connection to all the Dapps in our library like sushi swap. You swap your defi protocols so that you can instantaneously for example stake the crypto that you have in your wallet to those platforms and start earning interest on that. On the crypto that you’re not using for an example, you can lend to liquidity pools. You can also access Opensea and Magic Eden and hold and view your nfts in your wallet itself, visually. You could also view your music Nfts as well and play them through one of the Dapps that we have on our daps store.
How do you set up a non custodial wallet?
It can be quite confusing when you try to set up your non-custodial wallet for the first time. I’ve had to sit down with friends and help them sign up for a wallet in the past and that’s one of the reasons why we’ were inspired to build Thred in the first place.
You can go to website, click the link and literally create your non-custodial wallet with email and password sign in. It’s that simple.
What Is The Difference Between An Online Non-Custodial and a Hardware Cold Storage Wallet?
With a cold storage wallet such as Ledger, offline where you store your keys on the hardware device itself, while with a software wallet like Thred, it’s much more accessible because it’s just connected to the internet. There’s more use with it in the first place, so you can actually access Dapps, you can view live the transactions that are happening, you can stake your crypto. You can do that with the software wallet that Thred has developed,
With the hardware wallet, it’s disconnected from the internet, so you can’t view anything, all it does is store your crypto, and the only reason I can think of for having a hardware wallet is for security, which Thred handles for you.
How Do You Buy Crypto To Put In Your Wallet?
To transfer crypto into your wallet you can link to an exchange such as Coinbase if you have an account or you can use one of the Dapps in our library.
How Do You Transfer Crypto From One Person’s Wallet To Another?
Currently, you need to use an intermediary exchange but that’s something that we’re working on to make it even a smoother process, so it is just as simple as getting the wallet address of the person you want to transfer or receive funds from and then working through the process. We’re working to make it even simpler than like we’re looking at wallet addresses differently than others, we’re looking at it more from almost like a social perspective where you can see with complete transparency, total tokens held in a wallet.
That wallet can have its own username, and you can send tokens directly to that username.
A Crypto Wallet Solution For DAOs
We have a Dapp on our our store that’s being developed right now, where it can quickly generate Thred wallets for DAO members to send out DAO payouts That’s actually a problem for many DAOs as members are not receiving payouts or getting hacked.
Imagine that a DAO had a singular point of access to wallet management services, that this DAO would provide and they can just easily and seamlessly send out payments to the different wallets and manage that transparently.
How Can I Choose The Best Non-Custodial Wallet?
The best way is to research your non- custodial wallet of choice and understand the various methods of keeping your keys safe. That’s the best way to answer that question. How does this non custodial wallet store your keys and obviously at Thred, you have multiple layers of security. Obviously, encryptions one of them and we encrypt it on your hard drive itself. We encrypt it on our server. We give you a password that would unencrypt those two facets if needed and have kill, stops in place for any unauthorized activity. We will give you a notification, if there’s any kind of strange activity on your wallet, and we also have certain AI protocols in place to help us detect some of those issues that might come up with your wallet.
What Happens To Your Crypto Wallet If You Lose Your Computer or Password
Thred has been designed to help mitigate these issues. Thred gives you a master key, when you generate a wallet and if you lose your master key, Thred can reroute it to your email for an example, and if your email is compromised, then you would just call us.
There is a fee, but we would go back into our systems and uncrypt the original key with the master key and there’s a whole process behind it. But, yes, we could get you, your key.
We also have biometric sensors as well biometric passwordless access points. So even if you lost your password, for example, as long as you have your face, you’re going to be okay.
What Is Your Best Tip For Someone Looking To Start In Web3?
As well as educating yourself around the basics of Web3 and why you need a wallet, the first step is to get a Thred Wallet, get some crypto in there and install some of the free Dapps on the Thred library.
Have some fun. Interact. Show your friends how to download a Thred Wallet and start your journey into Web3 together.
We’d love to hear your thoughts on your favorite crypto wallet. Feel free to share your thoughts in the comments below.
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