Security concerns in centralized platforms have pushed many users toward self-custody solutions that offer greater transparency and ownership. In the evolving Web3 ecosystem, understanding wallet types is essential before managing digital assets. The concept of what is a decentralized wallet becomes important when evaluating control over private keys, transaction independence, and reduced third-party risk. This guide explains how decentralized wallets function, their role in DeFi applications, and why they are preferred for long-term asset storage. It also compares them with custodial options to help users make informed decisions based on security and usability needs. Learn more to assess whether full asset control aligns with your crypto investment strategy.