Lightning enables you to send Bitcoin payments quickly and cheaply without sacrificing the benefits of Bitcoin.
However, not all Lightning wallets are the same. You can determine which wallet is right for you by asking one simple question:
IS IT A SELF-CUSTODY WALLET?
One of the innovations of Bitcoin is the ability to store it without relying on a custodian, like a bank. Self-custody wallets unlock the full power of Bitcoin.
With a self-custody wallet, you are the only one with the ability to spend or transfer your money. No one can stop you, censor you, or steal from you when you use a self-custody wallet. These are also called non-custodial wallets.
Custodial wallets are wallets where you are not in control of your money.
These wallets are more similar to the banking system where you must trust a third party to give you access to your money. If your Bitcoin is on an exchange, you are using a custodial wallet.
Custodial wallets can seem convenient, but the custodian has the technical ability to steal all user funds at any time.
Not your keys, not your coins!
Looking for our Bitcoin Hardware Wallet Guide?