Quick take:
- Bybit’s Web3 wallet is targeted at crypto novices.
- The wallet offers cross-chain compatibility, private key management, access to DeFi and NFT marketplace, amongst other features.
- Bybit is the third largest cryptocurrency derivatives exchange.
Bybit today introduced its custodial wallet to make it more convenient for crypto novices to enter the Web3 space.
The Web3 wallet holds the users’ assets in custody and manages the private keys so that users don’t have to store and manage them on their own. Without the individual responsibility of managing private keys, Bybit claims the wallet makes it more convenient for newcomers to explore the world of Web3.
With the Bybit wallet, users can seamlessly access the decentralized web of DeFi, GameFi, and NFTs. The Bybit wallet also offers benefits such as cross-chain compatibility, airdrop management, access to NFT marketplace and DeFi products, and decentralised identity management.
In December, Bybit Wallet plans to launch the Swap feature in November, IDO and the airdrop management feature that helps users automatically collect tokens on the blockchain.
Bybit is currently the third largest cryptocurrency derivatives exchange according to CoinMarketCap. The crypto exchange joins KuCoin in launching a Web3 wallet this year, although Kucoin’s decentralised wallet is self-custodial, which means users have full control of their assets as they manage their own private keys.
Custodial wallets managed by crypto exchanges are widely considered to be less secure than self-custodial wallets as users do not have full control over their private keys and risk losing their assets. However, it is a convenient gateway for non-crypto natives to jump on board the Web3 space due to ease of use and management.
According to blockchain data platform Chainalysis, October is the “biggest month in the biggest year ever for hacking activity” as “$718 million has been stolen from DeFi protocols across 11 different hacks.”
Self-custodial wallets including Omni and Zerion have each successfully raised over $10 million in funds this year as they recognise that users are flocking towards self-custody solutions to manage their digital assets.
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