Custodial Wallet vs Non-custodial Wallet: Many Of You Might Be Confused Between The Two

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For a custodial wallet, a third party takes custody of the private key instead of the crypto owner.

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For a non-custodial wallet, the crypto owner holds their own private key and, therefore, their funds.

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Generally, custodial wallets are available from crypto exchanges or a custodial wallet provider in the form of a mobile or web app.

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This means users must trust the service provider to securely store their tokens and implement strong security measures to prevent unauthorized access.

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Non-custodial wallets, however, give users full ownership of their cryptocurrency, making them responsible for safeguarding their own private keys and funds.

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