What's the difference between Custodial and Non-Custodial
The world needs custodial wallet. If you don't know your bank account number, can you still access you bank account? Ofcourse! The bank knows you as a customer. The same is true for custodial wallets because you have an account that is manage by someone else. The benefit is if you loose your wallet, the custodian has a chance to recover your funds and figure out your identity. However, the saying goes... "Not your keys, not your wallet" With non-custodial wallets, you control the keys to the wallet. If you lose them, there is no getting it back. You are the sole custodian that proves you own the funds.
Get to defi
There are many types of defi wallets. Each with their pros and cons. Without going into details, in terms of crypto, a wallet is as set of keys the proves ownership of an account.
Keplr (Beta)- ATeamThrive - Validator Link
Crypto.com Defi Wallet Mobile Download
Crypto.org Chain Desktop Wallet (Beta) Download
Crypto.org Wallet Client (CLI Instructions)
Wallets
There 4 ways to stake CRO at this point in time. 3 are supported by crypto.org and 1 by keplr. Note that you must operate in the CRO native token for staking. There are 3 networks that CRO operates in.
- Native CRO token
- Cronos token
- ERC-20 token
Basic Ways to Stake/Earn CRO
A.) Stake on cronos-pos (formerly known as crypto.org chain) - Defi
B.) Stake on crypto.com via CRO Lockup or CRO Stakin
C.) Earn on crypto.com via Crypto Ear
1.) Staking on cronos-pos is independent of crypto.com. Can exist without crypto.com Your keys, Your crypto - non-custodial
2.) CRO Staking/CRO Lockup/Crypto Earn on crypto.com. Exists with crypto.com - custodial
3.) Defi wallet is an app that connects to the blockchain. The crypto-pos blockchain exists without it
FAQ
As far as which is better to stake CRO? It depends. (Cliche answer) In defi you can only stake on the cronos-pos blockchain. Otherwise, you have the option of stake/earn with crypto.com and their various methods. Defi has other methods, but not covered here.
What happens to my crypto in defi wallet if crypto.com goes bankrupt or disappear? Your crypto should be safe from crypto.com exposure. Again, your keys, your crypto. The blockchains operate indepently. If the defi wallet becomes unsupported, you need to find alternative wallets to connect to the blockchain. Also, you would need an alternate exchange to move in/out of fiat.
This is not finacial advice and you still need to DYOR. Hope this sheds some light. The defi wallet has come a long ways. Let's hope crypto.com doesn't disappear.
Happy Staking!
The Cronos Ecosystem
1.) Cronos POS
2.) Cronos EVM
3.) Cronos zkEVM