6 Crypto Wallet Contract Gotchas
- Not Your Keys, Not Your Crypto: HIGH Custodial wallets hold your private keys. If company fails, your crypto may be gone
- No FDIC Insurance: HIGH Unlike bank deposits, crypto holdings are not government insured. Total loss possible
- Lost Key Disclaimer: HIGH Lose your seed phrase or password? Company cannot recover your funds. Permanent loss
- Transaction Irreversibility: MEDIUM Blockchain transactions cannot be reversed. Send to wrong address = funds lost forever
- Regulatory Seizure Risk: MEDIUM Government can freeze or seize custodial wallet assets. Your compliance is your problem
- Network Fee Variability: MEDIUM Gas fees fluctuate wildly. Transaction may cost $5 or $500 depending on network congestion