Definition ∞ A decentralized wallet is a software application or hardware device that grants users complete control over their cryptocurrency private keys and digital assets. Unlike centralized exchange wallets, these wallets do not rely on a third party to custody funds. Users are solely responsible for managing their seed phrases and security. This design principle aligns with the self-custody ethos of blockchain technology.
Context ∞ Decentralized wallets are fundamental to the ethos of digital asset ownership and are frequently discussed in crypto news concerning security and user autonomy. The choice between a decentralized wallet and a custodial service often involves a trade-off between convenience and direct control over assets. Recent events highlighting risks associated with centralized platforms have underscored the importance of self-custody solutions. These wallets represent a core component of individual digital asset management.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
