What’s the difference between a CASP and a self-hosted wallet?

A CASP (crypto-asset service provider) is a regulated platform that holds your crypto for you. Examples include etoro, Coinbase, and Kraken. This custodial model combines strong security with ease of use.

A self-hosted wallet gives you full control over your assets, but also requires you to manage security and transaction validation independently.

When sending or receiving crypto with etoro, it is important to understand how the Travel Rule applies to each type of wallet.

CASP-to-CASP transactions

• Receiving crypto: If all required information is provided in advance, the crypto may be credited once all required checks are completed. If information is missing, you may be asked to confirm the source of the crypto, and your wallet may be temporarily restricted during verification.
• Sending crypto: You must provide the recipient’s name and confirm the transaction using two-factor authentication (2FA).

The minimum amount for CASP-to-CASP transfers is $1 USD. There’s no maximum limit, but other limits may apply depending on your region, account status, or the asset.

Self-hosted wallet transactions

• Receiving crypto from a self-hosted wallet: You must provide the sender’s name, and depending on your country of residence, additional verification may be required. Learn more
• Sending crypto to a self-hosted wallet: You’ll be asked to confirm whether the wallet belongs to you or someone else. If the wallet is not yours, you must provide details about the recipient.

The amounts that can be sent or received and the verification requirements vary according to local regulations for self-hosted wallets.

CASP and self-hosted wallet: key differences at a glance

Control: CASPs are regulated platforms that manage your crypto on your behalf. In contrast, with a self-hosted wallet, you have full control and responsibility.

Regulation: CASPs are subject to financial regulations and licensing, while self-hosted wallets are not regulated.

Examples: CASPs include platforms like etoro and Coinbase. Self-hosted wallets include Ledger, MetaMask, Trezor, and Trust Wallet.

Proof of ownership: Not required for CASP-to-CASP transfers, but mandatory when sending to or receiving from a self-hosted wallet.

Travel Rule compliance: CASPs handle this automatically. For self-hosted wallets, you need to complete manual verification steps.

Transfer experience: Transfers via CASPs are generally simpler and faster, while self-hosted wallet transfers involve more steps.

Best for: CASPs suit users seeking ease and convenience. Self-hosted wallets are ideal for those who want full control and are comfortable managing private keys.