Crypto 101: Custodial Vs Non Custodial

Custodial and non-custodial crypto wallets are two different types of wallets that store cryptocurrency. The main difference between the two is who controls the private keys.

Custodial wallets are managed by a third party, such as a cryptocurrency exchange or a wallet provider. This means that the third party has control over your private keys and therefore your cryptocurrency. Custodial wallets are generally easier to use and more convenient, as you don't have to worry about managing your own private keys. However, they are also less secure, as you are trusting a third party with your funds.


Non-custodial wallets, on the other hand, give you full control over your private keys. This means that you are responsible for safeguarding your own funds. Non-custodial wallets are generally more secure than custodial wallets, but they can also be more difficult to use. You need to be careful not to lose your private keys, as if you do, you will lose access to your cryptocurrency.