Telegram Wallet, a third-party Telegram bot that allows users to buy and sell cryptocurrencies like Bitcoin (BTC), has chosen custody instead of self-custody to make it easier to incorporate cryptocurrencies, according to a top executive.
Self-custody wallets give users full control over their private keys, which are used to sign and verify transactions. This means that users are responsible for safeguarding their own funds and if they lose their private keys, they will lose access to their funds.
Custodial wallets, on the other hand, store users' private keys on behalf of the wallet provider. This means that the wallet provider is responsible for safeguarding users' funds, and users can recover their funds if they lose their private keys.
Telegram Wallet has chosen custody instead of self-custody to make it easier for users to get started with cryptocurrencies. The company believes that self-custody wallets may be too complex and difficult for new users to use.
In a recent interview, Telegram COO Ilya Perekopsky said that the company is focused on making cryptocurrencies accessible to everyone. He said that self-custody wallets can be “scary” for new users and that custodial wallets are a better option to start with.
Perekopsky also said that Telegram Wallet is committed to security. He said the company uses a variety of security measures to protect user funds, including multi-signature wallets and cold storage.
Telegram Wallet's decision to choose custody over self-custody is likely to be controversial. Some users may prefer the security and control of a self-custody wallet, while others may prefer the convenience of a custodial wallet.
