Swapin solutions are changing the way individuals and businesses approach the cryptocurrency market. Not only do the innovative crypto-to-fiat tools bridge the gap between traditional finance and digital assets, but the Swapin app also puts control back into the hands of the crypto holder and helps to keep funds safer overall.
In this comparison, we are looking at custodial wallets versus non-custodial wallets and the many ways that the Swapin app eliminates much of the risk and barriers associated with the crypto market.
Swapin is a crypto-to-fiat pioneer formerly operating under the brand name PiixPay. After a rebranding campaign and a successful funding round raising more than €1.68M in capital and attracting various industry leaders across IT, tech, crypto, and finance, the company has incredible momentum and has been establishing meaningful partnerships as a result.
Services include ways for businesses to accept cryptocurrencies from their customers and tap into new revenue streams, along with various solutions for individuals that seamlessly connect crypto and traditional finance. Users can send money to friends and family, get instant cash by topping off a Swapin-connected crypto wallet or set up recurring payments for monthly bills like rent or subscriptions to streaming services.
Custodial Versus Non-Custodial Wallets
A custodial wallet is a wallet that is maintained and controlled by a third party. The most common example of this is a cryptocurrency exchange. These web-based wallets keep user funds handy enough so that they can sell coins in exchange for EUR or GBP. But it also means that users’ funds are exposed to a number of unnecessary risks. These risks include business insolvency, hacks, misappropriation of funds, fractional lending practices, and more. However, these wallets are incredibly user-friendly which makes them a popular choice despite the risk.
A non-custodial wallet is a type of wallet where the user maintains complete control and ownership over the account’s private keys. Non-custodial wallets are not always, but commonly take the form of, cold storage wallets. There is still risk with this type of wallet, but most of it comes down to responsibility. With a non-custodial wallet, the user must maintain the private keys or passphrase and keep it in a separate, safe place –– typically on paper –– away from water damage or fire. There are horror stories of users misplacing private keys to accounts holding millions of dollars worth of BTC and other cryptocurrencies.
How Swapin Solves Another Custody Challenge
With Swapin solutions, users can rely on the much safer non-custodial type of cryptocurrency wallet yet still access cash whenever they need it and without ever having to move their crypto to a custodial wallet. In most cases, a crypto holder would have to send funds from cold storage to a cryptocurrency exchange, cash out their coins, then move the money to a connected bank account. During that process, the user is exposed to price volatility risk, custodial wallet risk, and more.
By using Swapin instead, users can send funds from a safe, non-custodial cold storage wallet to a unique Swapin crypto wallet where the moment funds are received, the digital assets are converted to EUR or GBP and instantly sent to a specified bank account. In this process, there is no extended time sitting in a custodial wallet or lengthy exposure to volatility risk. Swapin locks exchange rates for 30 minutes while the instant conversion happens, so the amount you expect to receive is always what you get on the other end.
Keep Crypto Safe And Flexible With Swapin
Users are ultimately faced with the fact they need to cash out crypto occasionally, whether it is to take profit, to buy the things they need, or simply pay for everyday expenses and services using digital assets. They can do it the old way, where custodial wallets and several risky steps are involved, or they can do it the Swapin way.
Swapin is a trusted, licensed financial services provider and a leader in crypto-to-fiat payments. B2B solutions like e-Com and CoinCollector are attracting major partners like RE/MAX, while B2C tools are changing the cryptocurrency market by making a safer and more efficient connection to the world of traditional finance. Check out the Swapin app today.