Ethereum R1 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum

The S&P 500 rose 0.63% Thursday, boosted by strong Meta and Microsoft earnings, but futures slipped Friday as investors awaited the April jobs report and weighed Apple and Amazon tariff concerns. Gold fell to $3,235 as easing trade tensions cut safe-haven demand; markets await US jobs data for rate cut signals. The Coindesk Indices, which tracks the broader crypto market, rose 2.19%, with Bitcoin and Ether up 2.57% and 2.60%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is AR, which gained 16.8% following CloneX's successful migration to Arweave, sponsored by ArDrive.

Arweave (AR), founded in 2017, is a decentralized network for permanent data storage, using blockweave and Proof of Access to ensure long-term accessibility. It offers 200-year storage for a one-time fee, incentivized by AR tokens for miners. The system connects blocks efficiently to preserve and retrieve data, aiming to create a lasting digital knowledge repository. CloneX has successfully 

 to Arweave for permanent storage, with the support of ArDrive, which sponsored the migration of 100 GB of data. The process is nearly complete, with only Animus remaining to undergo decentralization.

Check out the latest prices, charts, and data of 

 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum. Built on open-source code and the Nethermind Surge stack, it emphasizes credible neutrality, public good funding (with all fees burned after 2030), and infrastructure that remains free from VC control or centralized dependencies.

Yesterday, BTC spot ETFs saw $71.1M in total inflows, with $16M from GBTC and $55.1M from other ETFs.

 $BOOP tokens to active Solana memecoin traders and creators who promote memecoins or Solana dapps on X. To claim, users must connect their Solana wallet or X account and launch a free token. The airdrop arrives in 30 days, but growing the token’s market cap can accelerate the reward.

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Ethereum R1 offers a decentralized rollup solution for Ethereum

This article dives into Bitcoin liquid staking protocol Lombard Finance, how LBTC works and how you can stake LBTC through Bybit Web3.

Bitcoin stands as the undisputed giant of the cryptocurrency space, commanding the largest market capitalization. Yet, much of its potential remains untapped, often sitting idle as a store of value rather than actively participating in the thriving 

 ecosystem. Lombard Finance aims to change this narrative by unlocking Bitcoin's utility and integrating it seamlessly into DeFi.

Lombard is built upon Babylon, the innovative Bitcoin staking protocol, and is incubated by Polychain Capital. Lombard’s flagship product, 

 (LST) for BTC. This article explores what Lombard Finance is and how LBTC works, and describes the Lombard ecosystem and how you can stake LBTC through Bybit Web3.

 is a liquid staking protocol that focuses on transforming 

's role in the digital economy. Its core mission is to evolve BTC from simply being a store of value — also viewed as 

 — into a productive asset that actively generates yield and participates within DeFi. Currently, a significant portion of Bitcoin's

 sits idle, lacking the native staking capabilities or cross-chain composability seen with assets such as 

Lombard Finance addresses this shortcoming by building on top of 

, a protocol that supports BTC staking without needing 

 or custodians. Babylon allows Bitcoin's economic weight to secure other 

 (PoS) chains and applications, creating a new yield source for holders. Lombard leverages this foundation to offer LBTC, making staked BTC liquid and usable across the DeFi market.

Lombard’s goal is ambitious: to channel Bitcoin's vast liquidity into DeFi. This could potentially double the ecosystem's 

 (TVL) if even a fraction of available BTC is introduced. Lombard believes this integration will catalyze significant growth and create more sustainable market dynamics by making BTC a core, yield-bearing primitive within DeFi.

Founders and investors of Lombard Finance

Lombard Finance was founded in April 2024 by a team with deep expertise within DeFi, drawing talent from established crypto projects like Polychain, Babylon, Argent, Coinbase and Maple. This collective experience underpins the protocol's design and strategic direction.

The project was notably incubated by Polychain Capital, a prominent crypto investment firm that also led Lombard's $16 million seed funding round (which was 

 in July 2024). This round saw participation from a wide array of significant players in the crypto space — including Babylon, dao5, Franklin Templeton, Foresight Ventures, HTX Ventures, Mirana Ventures, Mantle EcoFund, Nomad Capital, OKX Ventures and Robot Ventures — thus highlighting broad industry confidence in Lombard's vision. Strategic partnerships and contributions from exchanges like

 and Bitget are further bolstering its distribution and liquidity aggregation efforts.

LBTC is Lombard Finance's flagship product — a liquid staking token (LST) that represents Bitcoin staked through the Babylon protocol. Designed as a universal liquid BTC standard, LBTC is fully backed 1:1 by native Bitcoin, ensuring its value is directly tied to the underlying asset.

The token is yield-bearing, capturing rewards generated from securing PoS networks via Babylon staking. Crucially, LBTC remains liquid, meaning holders can freely use it across various DeFi applications — such as 

 and automated vaults — without sacrificing their underlying staked positions or associated yield.

LBTC is also designed for cross-chain compatibility, natively minted on supported blockchains like Ethereum, Base and Sui and using secure infrastructure [such as 

]. This avoids the risks associated with traditional bridging or wrapping methods, thus aiming to provide a more secure and seamless way to utilize Bitcoin across the multichain DeFi ecosystem.

Lombard Finance simplifies the process of putting Bitcoin to work within DeFi through its LBTC token. The mechanism is designed with security and user experience in mind, leveraging the Babylon protocol and a robust Security Consortium.

The core benefit of LBTC lies in its ability to unlock multiple layers of value simultaneously. Holders earn native yield from Babylon staking, potentially accrue additional rewards (such as Lombard Lux points) and gain access to diverse DeFi yield opportunities, all while maintaining the liquidity of their Bitcoin position. This transforms BTC from a static asset into a dynamic, yield-generating component of the DeFi ecosystem.

Lombard Finance is actively building a wide LBTC ecosystem that already boasts over 75 DeFi integrations. Security is foundational, anchored by the 14-member Security Consortium (including prominent names like Galaxy and OKX Ventures) and validating all critical operations alongside audits and bug bounties.

Core infrastructure relies both on Babylon for staking, and on the Chainlink CCIP for secure cross-chain movement, with EigenLayer integration 

. LBTC integrates with leading DeFi applications across lending platforms (e.g., 

) and automated vaults. The platform supports multiple blockchains (including Ethereum, Base, Sui, BNB Chain) and 

 (L2s), positioning LBTC as a versatile cross-chain asset.

Here's how you can stake BTC on Lombard and use LBTC in DeFi and automated vaults.

Lombard Finance (via its LBTC token) offers a compelling way for Bitcoin holders to put their assets into use, earn yield via Babylon staking and gain exposure to the expansive DeFi ecosystem — all while maintaining liquidity. Incubated by Polychain Capital and supported by a robust consortium and growing partner network, Lombard is positioning LBTC as a secure and versatile liquid Bitcoin standard.

It’s easy to participate in the Lombard ecosystem through 

, you can utilize your Bybit Web3 Seed Phrase Wallet to stake BTC and mint 

, Lombard's vault token that represents deposits in automated yield strategies. This provides you with a seamless gateway to access Bitcoin liquid staking and DeFi yields.

Ready to unlock your Bitcoin's potential? 

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Lombard Finance: Polychain-backed Bitcoin liquid staking protocol

The cryptocurrency market has entered a phase reminiscent of past altcoin seasons, primarily driven by Bitcoin's recent rebound to the $94K–$96K range. 

Altcoin season might have come with reviveding speculation 

The cryptocurrency market has entered a phase reminiscent of past altcoin seasons, primarily driven by Bitcoin's recent rebound to the $94K–$96K range. This resurgence has sparked renewed interest among retail traders, shifting focus from Bitcoin to smaller, more speculative altcoins. The overall market saw a 10% increase in value during the final eight days of April, contrasting with Bitcoin's 7% gain. This trend indicates a growing appetite for risk among investors, particularly in meme coins, which have seen a surge in social media discussions.

However, caution is warranted as elevated crowd enthusiasm often precedes market corrections. Historical patterns suggest that when buzzwords like "altseason" are dominating discussions, it may signal an impending price exhaustion. The current market dynamics reflect a shift toward speculative investments, raising concerns about the sustainability of this enthusiasm.

Bitcoin's bullish sentiment substantially improves

Bitcoin's position as the leading cryptocurrency has remained steady, with discussions around its price fluctuating significantly. Following a period of pessimism, when predictions dipped as low as $10K–$69K, sentiment shifted dramatically with the price recovery. Now, optimistic projections of $100K–$159K are dominating conversations, indicating a reversal in trader sentiment.

Despite Bitcoin's consistent presence in market discussions (approximately 25% of asset topics), the ratio of bullish-to-bearish commentary has grown increasingly favorable. This suggests a growing confidence among traders bolstered by Bitcoin's recent performance. However, it’s essential to monitor whether this bullish sentiment translates into sustained investment, or if it leads to overconfidence that may trigger a market pullback.

Ethere, once a robust contender in the altcoin arena, has struggled to regain retail investor confidence despite recent bullish commentary and promises of innovation from co-founder Vitalik Buterin. Its social media presence has dwindled to about 6–7% of discussions, a significant drop from previous years. This decline highlights the challenges Ethereum faces in re-establishing itself as a go-to investment in a market increasingly dominated by speculative assets.

Conversely, XRP has seen a notable increase in optimism surrounding ETF approvals, with expectations rising to 85%. This shift reflects a broader trend of institutional interest in cryptocurrencies, potentially paving the way for significant capital inflows. Meanwhile, Dogecoin's potential ETF listings have sparked renewed interest, transforming its image from that of a meme coin to a legitimate investment option. The growing dialogue surrounding institutional adoption of Dogecoin and XRP indicates a pivotal moment for these assets, suggesting they may play critical roles in the evolving cryptocurrency landscape.

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Bybit x Santiment social sentiment report: Altcoin sentiment recovers despite Bitcoin’s resilience

Bybit Spread Trading allows traders to simultaneously buy and sell two related instruments in order to hedge risk or profit from price discrepancies. Read more.

Whether markets are flying high or wobbling unpredictably, one thing remains true: traders are always looking for smarter ways to 

 and find profit opportunities. That’s where Bybit Spread Trading comes in. This feature is tailor-made for those who want to go beyond basic buy/sell plays and start taking advantage of price discrepancies between related instruments. In this guide, we’ll walk through exactly how Bybit Spread Trading works, why it matters and how you can start using it today, whether you’re 

is a newly launched Bybit feature that allows users to simultaneously buy and sell two related instruments — such as Spot, Perpetual or Expiry contracts with different settlement dates — in order to hedge risk or profit from price discrepancies.

This type of trading strategy is popular among institutional and professional traders because it enables more precise, controlled market exposure. However, with Bybit’s interface, the barrier to entry is significantly lowered, opening the door for individual traders to tap with just a few clicks into a powerful set of tools.

At its core, Spread Trading on Bybit is about executing what’s called a combo trade. This means entering two positions at once: one long, one short. These positions are taken on related instruments, such as a BTC Spot trade and a BTC Perpetual contract, with the idea that their prices will either converge or diverge in a way that benefits your position.

When you place a buy combo, you’re buying the instrument with the longer expiration (the “far leg”) and selling the one that expires sooner (the “near leg”). 

A sell combo is the reverse: selling the far leg and buying the near leg. The profit (or loss) comes from how the spread between these two instruments shifts over time.

For example, if you believe the spread between a Perpetual and a Quarterly Futures contract will widen, you can buy the combo. If the spread increases after your entry, that movement becomes your profit. Bybit calculates your 

 prices automatically, based on the mark prices and your defined “order price,” so there’s no need to manually crunch the numbers.

Perhaps the most important feature here is atomic execution. This ensures both sides of your combo trade are filled together, in equal quantities, or the trade doesn’t go through at all. It removes “leg risk,” which is the danger of getting filled on one side of the trade, but not the other. In volatile markets, that alone can save you from an unwanted mess.

Spread Trading on Bybit currently supports combinations such as Spot and Perpetual, Spot and Expiry, Perpetual and Expiry, or even two Expiry contracts with different dates. This flexibility lets you build strategies that align with different market outlooks — bullish, bearish or neutral.

There’s a strong reason why Spread Trading is a go-to for many experienced traders: it allows for strategic plays that are more sophisticated than just guessing price direction. On Bybit, it’s not only powerful, but also convenient.

First, you get price certainty. Your spread is locked in at the price you specify. There’s no 

 between legs because the entry prices are automatically calculated and matched. You’re trading the spread, not the individual legs.

Secondly, the trading experience is smoother. Instead of placing two separate orders and manually trying to sync them, Bybit handles everything as a single transaction. You don’t have to worry about whether one leg gets filled and the other doesn’t — that risk is eliminated through atomic execution.

Third, this setup is a great hedge against volatility. By taking opposing positions on two related contracts, you reduce exposure to sharp price movements. Your P&L becomes more about the relative performance between contracts, rather than the market direction itself.

There’s also a strong cost advantage. Trading spreads on Bybit is significantly cheaper than doing it manually. You pay only half the trading fees you’d incur if you placed two individual trades on the order book. For high-volume or 

, that translates to meaningful savings over time.

Finally, it unlocks strategy flexibility. Whether you're 

 funding rates between Spot and Perpetual, doing 

 with different Futures contracts or taking advantage of price convergence before expiry, this platform gives you the tools to execute those ideas efficiently.

How to get started with Bybit Spread Trading 

Now that you have a better understanding of how Bybit Spread Trading works, let’s look into how to get started. Please note that you’ll need to have a Bybit account in order to proceed. If you don’t already have one, please check out our 

 for more information on how to create a Bybit account.

: Log in to your Bybit account and hover your cursor over the 

: The available spreads are organized in a grid, with each tile representing a unique combo. Choose your preferred combo to trade.

Tiles with a border around them signify that Spread Trading offers a better price. Hover over a tile for more details, or use the bar at the bottom of the grid to explore more options.

On the order placement page, set up your order with the following parameters:

to place your order. A pop-up window will appear for you to confirm your order details. Then, click on 

Congratulations — you’ve successfully placed an order!

You can view your Spread Trading orders from any trading page (Spread Trading, Spot and Futures), as they all share the same order data.

 to view your active orders. You’ll be able to view the combo, underlying asset, order price and more. 

If you would like to adjust your order parameters, you may click on the pencil icon under 

. To cancel your order, simply click on the order’s corresponding 

to view your completed orders. To view each order’s information on each leg, click on the order’s corresponding 

button. For additional insights, click on 

Spread trading isn’t for everyone — but if you’re someone who enjoys strategic trading, hedging or arbitrage, it’s a tool worth adding to your arsenal. It appeals to traders who are less interested in taking a directional bet, and more focused on capitalizing on inefficiencies in the market.

You don’t have to be a pro trader to benefit, either. The simplified execution and intuitive UI mean even intermediate users can explore advanced strategies without being overwhelmed. As long as you understand how spreads work, and how your P&L is affected by their movement, you’re already halfway there.

More importantly, in times of market uncertainty or low volatility — when price action feels sluggish — spread trading gives you an alternative way to profit. It keeps you in the game — even when momentum plays aren’t cutting it.

Bybit Spread Trading is a powerful tool that combines simplicity with sophistication. Whether you're looking to hedge, save on fees or experiment with 

 strategies, it offers a clean and user-friendly way to do so. With lower risk, lower costs and plenty of flexibility, Bybit Spread Trading is a smart move for any trader looking to level up their game — especially when markets get messy.

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Bybit Spread Trading: Smart strategies for market swings

Bybit Learn

web3

Looking for a crypto wallet to use? Read more on the differences between custodial and noncustodial crypto wallets and determine which you should use.

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As wallets continue to evolve from a simple store-of-value product to a critical infrastructure component and passport that underpins everything in web3, we examine what to look for as you explore the next iteration of the internet.

When you're investing in cryptocurrency, the right 

 is essential. Crypto wallets help to keep your assets safe by ensuring that only authorized people can access the funds. However, it can take a little time to choose the best type of wallet for you. 

Most crypto wallets can be categorized as either custodial or 

. Both styles have their own pros and cons, so the right choice really just depends on your situation. To choose the best type of wallet for your needs, explore this helpful guide.

A custodial crypto wallet is a type of crypto wallet for which a third party holds onto the private keys for the customer. The owner of the crypto can send or receive payments, but they do not manage their keys themselves.

Custodial crypto wallets are frequently used by crypto exchanges and other 

 (DeFi) companies. When you put your funds in a custodial wallet, you’re essentially outsourcing wallet management to the exchange, which becomes responsible for completing transactions, holding your keys and storing your funds securely. The upside is that you can access your funds by entering just a single key. 

If you’re looking for a great custodial crypto wallet to use, consider 

 — a web3–compatible wallet that can be created in one click, and aims to give users convenience and peace of mind without the hassle of a complex 

. Bybit is known to be trustworthy and reliable with its industry-grade security and 24/7 live customer support, so you can rest assured that your funds will be kept safe.

If you already have a Bybit account, you may wonder what the difference is between your existing Bybit account and the new Bybit Wallet. Think of your Bybit account as a platform for you to store and trade your crypto on the Bybit exchange. The Bybit Wallet, on the other hand, is a custodial crypto wallet that not only holds your assets and private key, but also gives you direct and complete service to the decentralized web of DeFi, GameFi and NFTs. It’s your operating system to web3 with on-chain behaviors and benefits all in one place.

Here are a few of the exciting things you can look forward to with Bybit Wallet: 

With so many features, Bybit Wallet aims to be the preferred gateway to the web3 ecosystem, not only for Bybit users, but for all other crypto users worldwide.

To understand how a custodial crypto wallet works, it’s essential to know how crypto wallets function. Unlike a real-world wallet, crypto wallets don't contain your actual funds. Instead, a standard wallet contains the addresses where your cryptocurrency is located, the public key that lets you set up transactions, and the private key to authorize transactions.

If you have a custodial crypto wallet, you don't keep track of the keys or the addresses yourself. Instead, you have an account with a third-party business that holds all this information for you. To access your account, you log in with a username and password, just as you would for an email address or social media account. This login then authorizes the company to perform crypto actions on your behalf.

Once you log in, you use the custodial crypto wallet company's interface to manage your funds. You can do things like see your balance, send money, or purchase more coins. What you see on the interface is not the 

 or the cryptocurrency itself, but rather an intermediary. You’re essentially telling the company what actions you want to perform on the blockchain, and then they handle the details for you.

A noncustodial crypto wallet is a crypto wallet for which the person who owns the funds in it also manages them. The user has control over their own crypto keys, and handles transactions themselves.

Like a custodial crypto wallet, a noncustodial crypto wallet is typically still a product provided by another company. However, noncustodial crypto wallets do not manage cryptocurrency for you. You’ll need to keep track of your public and private keys, and input them each time you make a transaction. Because of this requirement, noncustodial crypto wallets tend to be a little more complicated to use. Some noncustodial crypto wallet options, like 

, try to be user-friendly, while others like 

How Does a Noncustodial Crypto Wallet Work?

Noncustodial crypto wallets may sound a little simpler, since third parties aren't involved in each transaction. However, despite being theoretically straightforward, a noncustodial crypto wallet can, in reality, be fairly complicated. Noncustodial crypto wallets can work in a variety of ways, depending on the sort of wallet you have and the type of crypto you want to work with. Unlike most custodial crypto wallet services, noncustodial crypto wallets can be software or a piece of hardware.

There are different procedures in place, depending on the sort of noncustodial crypto wallet you have. However, they all follow the same basic concept: They give you a place to store your crypto funds, and you use a public key and a private key to access the funds. When you want to receive funds, you can give people your public key. In order to accept crypto assets, send funds and complete other transactions, you need to enter your private keys in your crypto wallet.

With a noncustodial crypto wallet, you’ll need to perform transactions yourself on the blockchain of the crypto you're working with. These transactions are typically reflected in real time on the chain. However, some hardware noncustodial crypto wallet options allow users to sign a transaction offline with their private key, and then upload it to the blockchain for confirmation.

Since there's sufficient variety in how noncustodial crypto wallets work, it can be helpful to take a closer look at the different types. If you decide to work with a noncustodial crypto wallet, you can use one or more of these options.

A hardware wallet is a small module that often looks similar to a USB stick. It remains turned off when you aren't using it, and doesn't have its own internet connection. When you want to make a transaction, you connect the wallet to a computer or mobile device. It then transmits your crypto keys to the blockchain to finalize the transaction. You usually need physical possession of this type of hardware wallet to manage your funds. If you lose the hardware wallet and don't have your keys memorized, your crypto funds may be lost.

A browser-based crypto wallet is usually a type of browser extension. You download it onto your computer and connect it to your preferred web browser. When you want to take part in crypto exchanges, or send your crypto assets to someone else, you open the extension and input your private key. Browser-based noncustodial crypto wallets let you retain full control over your keys, coins and passwords. Many browser-based wallets give you a seed phrase that’s linked to your crypto wallet. You can enter the seed phrase on another device to regenerate your wallet. This provides an additional measure of security in case you lose access to the device on which you originally accessed the wallet.

Mobile crypto wallets combine the flexibility of browser wallets with the portability of hardware wallets. This type of wallet is usually a mobile app. You download and install it on your phone, and it offers a variety of ways to manage and use your crypto keys. You can enter keys to sign transactions or simply store them within the wallet to retain access to your crypto assets. Like browser-based wallets, a mobile wallet typically provides you with a seed phrase. This long string of words is something you can input on another phone to restore access to your keys.

Custodial vs. Noncustodial Crypto Wallets

Now that you know the basics of custodial and noncustodial crypto wallets, it's time to take a closer look at them. Though they do have a few things in common, custodial crypto wallets tend to be vastly different from noncustodial crypto wallets. Here are some of the main similarities and differences.

This is the primary difference between a custodial and noncustodial crypto wallet. With a custodial crypto wallet, the third-party business is responsible for keeping track of your private key and using it to finalize transactions. Meanwhile, with a noncustodial crypto wallet, you’re in charge of your own key.

If you lose access to your primary method of reaching your crypto assets, it’s a lot easier to recover your funds on a custodial crypto wallet than on a noncustodial one. You can log in to your account from various devices, and if you lose your password, you can follow the steps to recover it and regain control of your wallet. Typically, the company that manages your wallet has customer service available to assist you, and if a malicious actor hacks your account, they can attempt to help you restore your crypto assets. For example, if you ever require any assistance regaining control of your Bybit Wallet, Bybit’s 24/7 live customer support will certainly come in handy and be there for you every step of the way. 

A noncustodial crypto wallet does offer some recovery options, but they’re not as widespread. Some types of hardware wallets may not offer any recovery options at all. Most browser and mobile wallets provide users with a seed phrase. However, if you lose your seed phrase, you usually have no way to recover funds. It’s also possible to fall prey to scams, such as phony websites that trick you into inputting your seed phrase so malicious actors can steal your funds.

Usually, custodial crypto wallets are less secure. To manage your crypto assets for you, their platforms retain vast amounts of highly confidential information. If someone hacks their storage, the hacker can get your private and public keys. Meanwhile, with a noncustodial crypto wallet, you're retaining the data yourself. It’s therefore much harder for malicious actors to access the information that’s stored solely on your device. If you prioritize security, it's a good idea to consider hardware wallets. However, you should still be wary, as anyone who gets hold of your password on your noncustodial crypto wallet can still access it and drain your funds. 

When a custodial crypto wallet approves a transaction for you, things are a little more complex. The platform has to use a central exchange to approve your transaction and pass on the information to the blockchain. This can result in higher transaction fees and a slight lag before the transaction is recorded. Noncustodial crypto wallets use direct transactions. They record changes to the blockchain in real time, and the lack of intermediaries means that transaction fees are often lower.

In order to function, custodial crypto wallets need to access the internet. Without connectivity, they can't communicate with the central authority and transmit your authorizations. While some noncustodial crypto wallets do use the internet to work, it's not an absolute requirement. There are plenty of hardware wallets that operate offline. You can put in your keys offline, and only need to briefly connect to the internet to update the blockchain. 

Many people use DeFi services because they want more anonymity and privacy. However, some crypto wallets are heavily regulated. Custodial crypto wallets often qualify as a financial service that must meet local standards for 

 (KYC) protocols. Meanwhile, noncustodial wallets are less standardized. Many are simple pieces of hardware that can be sold without requiring users to provide their names or financial details. This provides a more private experience for customers.

User-friendliness is a somewhat complex thing to analyze since every service is so different. Generally, custodial wallets are easier for people to use. Once you log in, you can send and receive funds with a simple click.

Meanwhile, noncustodial wallets require inputting long strings of numbers and performing other tasks. However, keep in mind that custodial wallets don’t guarantee any given service is easier to use. Every business is different, and the interfaces for some custodial crypto wallets can be very confusing. 

With Bybit, you won’t have to worry. Bybit Wallet offers a user-friendly interface to ensure that you have easy access to every feature on the Bybit platform, as well as web3 applications. The Bybit Web3 Portal even has guides and tips to help you out on your web3 journey. 

Advantages of Using Custodial Crypto Wallets

Why should you give a custodial crypto wallet a try? There are several advantages to working with these types of crypto wallets.

For many customers, the main perk of a custodial crypto wallet is that it’s fast and easy to use. Especially if you're new to working with digital assets, a custodial crypto wallet can be very reassuring. It functions just like a regular online account, and uses the standard username and password setup that most customers are already familiar with. Letting a third-party business handle your private keys also simplifies the process of buying and selling crypto. Instead of having to enter long private keys and figure out the blockchain, you can just click simple buttons that say things like 

If you've heard stories of people who bought hundreds of 

, you know how important recovery is. For most crypto owners, the idea of suddenly not being able to access their funds is a nightmare. Custodial crypto wallets provide a lot of reassurance. They hang onto your private keys for you, so you never have to worry about losing them. Instead, you just need to remember a simple account name and password. If you lose access to these details, the crypto wallet company is there to help you prove your identity and recover control of your account.

Leaving another company to handle your private keys for you can be less stressful. You don't have to worry about making mistakes, or learning the ins and outs of working with the blockchain. Since the company handles each transaction for you, you can’t accidentally send your funds to the wrong public key. And as long as you're practicing basic security standards, you don't have to worry about hacks, either. The third-party service handles security for you and may be legally required to compensate you if you are hacked.

Disadvantages of Using Custodial Crypto Wallets

Though there are certainly a lot of perks to working with a custodial crypto wallet, there are also some potential downsides. Here are a few things you need to be aware of before you settle on a custodial crypto wallet.

Working with a custodial crypto wallet company does come with some inherent security risks. Though most reputable companies work hard to secure their users' private data, third-party services have more points of vulnerability. Each time you conduct a transaction, you have to connect to the internet and send and receive information online. Furthermore, a lot of important user data, including private keys and locations for crypto assets, all have to be stored in a massive database. Hackers are aware of how valuable these digital assets can be, so they often target custodial crypto wallet companies. Any time you select a custodial crypto wallet, you have to be willing to accept the higher risk of hacking.

Every custodial crypto wallet company has to do some basic user verification before providing an account. They do this because they can face a lot of legal consequences if they provide their services to criminals. Unfortunately, all of the user verification and anti-laundering standards come at a price. Users typically have to give the company information such as their name, location and age. Some sites may also require your social security number or bank account numbers. If you don't want random companies learning about your financial business, a custodial crypto wallet might not be right for you.

Due to the custodial crypto wallet’s setup, you’re essentially letting a third-party system hold onto your crypto funds for you. Since they have the keys to your digital assets, they’re in possession of those funds. Much like storing your money in a bank, this comes with some risks. If you break the wallet's terms of service, they may be able to 

 indefinitely. Furthermore, if you use your assets in an illegal way, the government can require the wallet company to freeze your funds or turn them over to the government.

Advantages of Using Noncustodial Crypto Wallets

There are plenty of reasons to work with a noncustodial crypto wallet, as they provide many helpful benefits for their users.

If you’re using a noncustodial wallet, your funds are a lot more secure. Since these crypto wallets don't contain access to hundreds of users of accounts, they aren't as big of a target for hackers in the first place. Furthermore, if a hacker does decide to try hacking into your account, it's a lot harder. All the information about your digital keys isn't floating around on the web where it's easy to steal. There's no user account that a scammer can phish their way into, and there are fewer software vulnerabilities to exploit. Noncustodial crypto wallets also offer offline versions that provide even more security. This cold storage method is almost impossible for a hacker to mess with. Unless they physically go to your house and get your crypto wallet, your funds are secure.

A huge advantage of a noncustodial crypto wallet is that it gives real-time updates on the blockchain. With a custodial crypto wallet, each transaction you make requires you to tell the wallet provider what you want, and then wait on them to do it. This slight lag can cause a lot of problems. At best, it results in a longer wait before you get your money. In worst-case scenarios, it can cause contracts to fall through or cause you to miss out on a sale. 

If you want instant, reliable transactions, a noncustodial crypto wallet is the way to go.

Within the crypto world, a popular saying is, "Not your keys, not your coins." This statement expresses the importance of 

. With a noncustodial crypto wallet, you never have to worry about another party taking your crypto. As long as you keep things secure, the coins are always in your possession. There’s no risk of a third party preventing your access to your coins. Your account can't be frozen for misbehavior, and you don't have any limits on how you can use your money. If you got into crypto for the freedom of DeFi, a noncustodial crypto wallet is an ideal choice.

Disadvantages of Using Noncustodial Crypto Wallets

Despite all of their benefits, these crypto wallets aren't for everyone. Here are a few things you need to keep in mind.

These crypto wallets don't store your keys in a database, which can be a problem if you lose them. If that occurs, there aren't many ways to access your crypto assets. Most noncustodial crypto wallet options do provide a seed phrase, which you can use to regenerate the wallet if you lose the device the original wallet was stored on. However, this means you only have one chance to restore your wallet. If you lose the device with the keys and don't remember your seed phrase, you're out of luck. These crypto wallets don't come with a friendly customer service team who can reset your password and log you back in to your account.

A big downside of a noncustodial crypto wallet is that it can feel a little confusing. These DeFi wallets don't use the classic username and password combination most people are already used to, and their interfaces can be quite complex. Even with the best UI in place, crypto wallets that aren't custodial tend to be more challenging. Users have to personally sign transactions, instead of just clicking a 

 button. Noncustodial crypto wallet options require at least a basic working knowledge of what a blockchain is and how cryptocurrency works.

More Responsibility for Your Own Security

For some users, the idea of having more control over their crypto wallets is a great thing. However, this extra power does come with a little more pressure. You can't sit back and know that a multimillion company with several security experts is handling your security. Instead, you have to be a little more proactive. Leaving your hardware crypto wallets lying around would be just as dangerous as leaving a billfold sitting out. Furthermore, since you actually know your own crypto keys, there's more of a risk that you could accidentally give them away. Mistakenly letting the wrong person see them could lead to the loss of your crypto assets.

Which Wallet Type Should You Use for Your Crypto?

Ultimately, all types of crypto wallets have their own advantages. There's no absolute best type of wallet to use. Some people prefer using a noncustodial crypto wallet because they value security, while others prefer using a custodial crypto wallet because it puts their mind at ease when it comes to handling transactions and fund recovery. That being said, the right choice really just depends on your situation and your preferences.

One custodial crypto wallet we’d recommend trying out is Bybit Wallet. Bybit has a proven track record when it comes to 

. In addition, you’ll never have to worry about losing access to your funds because Bybit’s 24/7 live customer support will always be there to help you out. 

With Bybit Wallet, you don’t just get the sole function of keeping your funds safe, you’ll also be granted access into the web3 world of DeFi, GameFi and NFTs. 

Custodial vs. Noncustodial Wallets: Which Should You Use?

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