Telegram Wallet chooses convenience over security to make it easier for new users to enter the world of cryptocurrencies
Telegram Wallet, a significant bot on the Telegram platform for buying and selling cryptocurrencies, has chosen to adopt a custodial solution over self-custody to simplify the onboarding process for new users. The full rollout of the wallet is slated to commence in November 2023, with initial launches in several African and Latin American countries.
The Telegram Wallet bot operates as a custodial wallet. This means that users entrust their coins to a third party, rather than managing them directly. The decision to opt for a custodial solution was taken to make the onboarding process less complicated for new users, particularly those who are not yet familiar with the world of cryptocurrencies.
Self-custodial wallets require users to understand how to store seed phrases and handle wallet apps or extensions, which can be complex for non-crypto native users. By choosing a custodial solution, Telegram Wallet aims to remove these barriers and make it easier for users to get started with cryptocurrencies.
While custodial wallets offer more convenience, they are generally considered less secure compared to self-custodial wallets. This is because the user does not have complete control over their coins, and the third party managing the coins could potentially be a target for hackers. However, for new users who are still getting to grips with how cryptocurrencies work, the simplicity and ease of use of custodial wallets can be a major advantage.
The full rollout of the Telegram Wallet is expected to begin in November, starting with several African and Latin American countries. This move is part of Telegram's broader strategy to make cryptocurrencies more accessible and user-friendly for people all over the world.