> ## Documentation Index
> Fetch the complete documentation index at: https://docs.prudra.dev/llms.txt
> Use this file to discover all available pages before exploring further.

# Choose a wallet type

> Decide between managed wallets and BYO wallets based on your custody needs and use case.

## Choose a wallet type

Prudra supports two wallet types: managed and BYO. The right choice depends on whether you need Prudra to initiate transactions on your behalf, and whether you already have an existing wallet address.

## Decision table

| If you need...                              | Use                              |
| ------------------------------------------- | -------------------------------- |
| Receive payments only, have existing wallet | BYO wallet                       |
| No custody complexity, quick setup          | BYO wallet                       |
| Send transfers or withdrawals               | Managed wallet                   |
| Bridge tokens across chains                 | Managed wallet                   |
| Per-customer unique deposit addresses       | Managed wallet (child addresses) |
| Automated fund sweeping                     | Managed wallet                   |
| Maximum custody control                     | BYO wallet                       |
| Phase 1 / simplest path                     | BYO wallet                       |

## BYO wallet

You own and control the private key. Prudra monitors your address using blockchain address monitoring — it fires `deposit.success` webhooks when funds arrive and maintains a balance view, but it never initiates transactions.

**Pros:**

* No custody relationship with Prudra
* Works with any existing EVM wallet
* Fast setup (register an address, done)
* No key management to think about

**Cons:**

* No outbound transfers from Prudra
* No bank withdrawals via Prudra
* No child address generation
* Manual fund management required

**Plan limits:**

* Hobby: 1 BYO wallet
* Pro: 5 BYO wallets
* Enterprise: unlimited BYO wallets

## Managed wallet

Prudra generates a private key and custodies it using KMS envelope encryption. The key never exists in plaintext outside hardware. You get an address; Prudra can initiate transactions from that address on your behalf.

**Pros:**

* Outbound transfers, swaps, and bridges
* Bank withdrawals (crypto → fiat → wire)
* Child addresses for per-customer isolation
* No key infrastructure to manage

**Cons:**

* Prudra holds custody of the key
* One master wallet per plan (Hobby/Pro)
* Requires trust in Prudra's key management

**Plan limits:**

* Hobby: 1 managed wallet, 1 active chain
* Pro: 1 managed wallet, 5 active chains
* Enterprise: unlimited managed wallets and chains

## Child addresses

Child addresses are unique EVM addresses derived from a managed master wallet using BIP-44 hierarchical deterministic derivation. Each child address is independent and receives funds separately.

Use cases for child addresses:

* Issue a unique deposit address to each customer
* Separate payment flows by product line or geography
* Limit blast radius if one address is compromised

Child addresses are unlimited on all plans. They require a managed wallet.

## When to use both

Some organisations use both: a BYO wallet for payment receipt on existing infrastructure, and a managed wallet for treasury operations (outbound transfers, withdrawals). The `walletMiddleware` can be configured per-route to use different wallets.

## Related

* [Managed wallets overview](/wallets/managed/overview) — KMS encryption, how custody works
* [BYO wallets overview](/wallets/byo/overview) — monitoring, registration, deposit detection
* [Child addresses](/wallets/managed/child-addresses) — per-customer unique deposit addresses
* [Transfers](/wallets/transfers/overview) — what managed wallets can do with funds