The Spectrum of Wallet Options on Sui

Sui provides a variety of wallet options designed to fit different levels of control, functionality, and user expertise. Whether you’re new to blockchain or a seasoned user, understanding the distinctions between wallet types can help you make the best choice for managing your digital assets. 

Some users may want the simplest experience possible, opting to trade some control and sovereignty for convenience. Others may have very specific needs and combine hardware wallet security with multisig account management.

By exploring what options are available on Sui, you’ll be better equipped to find the wallet that fits your needs.

Custodial vs. non-custodial wallets

First, it’s important to understand that a wallet is simply software that lets you interact with an address or account on Sui. The address or account exists on the blockchain, while the wallet serves as an interface to access it.

All blockchain wallets will either be custodial or non-custodial. With a custodial wallet, the provider secures the private key, making it convenient for users who don’t want the responsibility of managing it. In contrast, a non-custodial wallet gives users full control over their private keys and accounts, but it also means they are solely responsible for securing them. The key distinction between the two lies in who holds the private keys and, ultimately, who has unilateral control of the wallet.

Custodial wallets, like those offered by Binance, Coinbase, or enterprise-grade custodians such as BitGo and Copper, handle private key management on behalf of users. These wallets prioritize simplicity, making them ideal for beginners or those who prefer to trust established institutions with their asset security. However, this convenience comes with a trade-off as users relinquish full control of their assets, and security depends entirely on the custodian’s infrastructure.

Non-custodial wallets, on the other hand, give users complete control over their private keys and assets. Sui’s ecosystem offers a range of non-custodial options to fit different needs. For example, Sui Wallet leverages Sui capabilities to offer powerful features such as social login with zkLogin. Other options, such as Nightly and Phantom, provide multi-chain support. Additionally, users can choose between browser extensions or mobile apps, depending on their preferences. 

Non-custodial wallets offer unmatched control and independence, but with that comes the responsibility of securing private keys or recovery phrases. Losing them could mean losing access to assets. The choice between custodial and non-custodial wallets ultimately depends on whether you value convenience or full sovereignty over your digital assets.

Hardware wallets add security

A hardware wallet is a powerful tool for enhancing the security of any wallet type. They help to guard against online threats such as phishing attacks, malware, and other security vulnerabilities. Despite the name, a hardware wallet doesn’t necessarily replace the need for another wallet interface, such as Sui Wallet, to interact with your account.

Hardware wallets allow users to create an account on Sui without exposing private keys online. Most custodial wallets incorporate some form of hardware or air-gapped wallets to ensure the best possible security.This is often referred to as cold storage, while a wallet that is not secured by a hardware device and remains connected to the internet is called a hot wallet. For non-custodial wallet users, the decision to integrate a hardware wallet is optional, but doing so offers an additional safeguard when creating a new account.

Hardware wallets, like those offered by Ledger, are physical devices used to generate private keys and sign transactions offline, separate from Internet-connected devices. For example, if a user creates a new account on Sui using Sui Wallet directly, the private keys are stored on the device running the Sui Wallet app, making them potentially accessible via an internet connection. In contrast, a hardware wallet generates and stores the keys in a way that keeps them completely offline, making it nearly impossible for hackers or malicious software to access them.

While hardware wallets reduce the risk of unauthorized access to private keys, they trade off some convenience. Users must connect the device and manually confirm each transaction, adding an extra step to the process. Many users balance security and accessibility by using a hardware wallet for the bulk of their assets while keeping the assets they need to access more frequently in a separate hot wallet. 

For those serious about protecting their digital assets, hardware wallets are an invaluable tool and a worthwhile consideration when creating new accounts on Sui.

Multisigs add greater access controls

Traditional wallets may not meet the needs of certain use cases, such as managing a DAO treasury. In these scenarios, it’s often necessary to require multiple members of the DAO to approve any transaction before it can proceed. This is where multi-signature, or multisig, accounts come in.

When a multisig account is created, its structure and members are predefined. For instance, a basic setup might involve three separate accounts, with a rule requiring two of the three to approve a transaction before it can be submitted to the network. To enhance security, hardware wallets can also be used to protect the private keys of individual accounts participating in the multisig.

While most blockchains rely on smart contracts to implement multisig functionality, Sui natively supports multisig accounts, making the process more streamlined and versatile. Sui’s multisig capabilities allow for various structures, including both “and” and “or” logic, as well as custom weighting. For example, a transaction could be approved if accounts A and B sign it together, or if accounts B, C, and D collectively approve it. This flexibility makes Sui an ideal choice for managing complex account setups.

Sui multisigs also support multiple key schemes, including Ed25519 and ECDSA formats, making it possible to mix and match keys in a single multisig account. This flexibility enables innovative use cases that go beyond traditional wallet setups.

For organizations or teams, multisigs provide shared control of an account, ensuring that no single individual has unilateral authority over transactions. For individuals, multisigs can be used to implement two-factor authentication by combining different types of keys, such as a mnemonic-based key and a mobile-secure enclave-stored key.

The right wallet for your needs

Sui’s wallet options offer something for everyone, from the simplicity of custodial wallets to the control of non-custodial options, the enhanced security of hardware wallets, and the versatility of multisigs. These solutions are designed to meet a wide range of user needs.

Whether you’re new to blockchain or an experienced user handling complex transactions, Sui provides tools that balance innovation, security, and usability to elevate your experience.

Get started on Sui today and find the perfect wallet to manage your assets securely.

Note: This content is for general educational and informational purposes only and should not be construed or relied upon as an endorsement or recommendation to buy, sell, or hold any asset, investment or financial product and does not constitute financial, legal, or tax advice.