Differences Between Seed Phrase Wallet, Keyless Wallet, and Cloud Wallet

Seed Phrase Wallet

Keyless Wallet

Cloud Wallet (formerly Bybit Wallet)

Requires Bybit Account

No

Yes 

Yes

Requires Identity Verification 

No

No

No

Custody Method

Users maintain full control over their seed phrases and private keys.

Private keys are secured through a two (2) key-shares system and a recovery password.

Share 1: Secured by Bybit.

Share 2: Stored on the user's cloud drive, encrypted with a recovery password set by the user, and backed up to the user's cloud drive.

Third-party (Bybit) managing private keys on behalf of users.

App & Web Support

App: Create a Seed Phrase Wallet

Web: Connect via Bybit wallet extension

App: Create Keyless Wallet 

Web: Connect via WalletConnect 

Both supported. 

Supports Web3 Events 

All features and projects on Bybit Web3 except IDO and Inscription.

DEX Pro, Swap, Dapps

All features on Bybit Web3. However, not all projects are supported because the cloud wallet may not be connected to the corresponding blockchain.

Security Measures

Encrypted storage on iCloud or Google Drive cloud disk.

Multi-point private key storage.

Standard security protocols.

Ease of Operation

May require more technical understanding for safekeeping of the seed phrase.

Relatively easier as private keys are managed by the user.

User convenience with Bybit managing private keys.

Safety Level

High

Medium

Low

Supported Chains 

Please connect to the appropriate wallet and review the supported chains on the wallet's page.

Alternatively, you can view it on this page. 

Compatibility

Cross-platform compatibility for importing seed phrases or private keys from other wallets. 

Can import seed phrases or private keys to other platforms.

Exclusive to Bybit web3 platform.

Exclusive to Bybit web3 platform.