What are the differences between custodial and non-custodial wallets in the crypto industry?

3 answers

• Dec 26, 2021 · 3 years ago
  Custodial wallets are wallets where a third party, such as a cryptocurrency exchange, holds and manages your private keys on your behalf. This means that you don't have full control over your funds and you are trusting the custodian to keep your assets secure. Non-custodial wallets, on the other hand, give you full control over your private keys and you are responsible for the security of your own funds. While custodial wallets may offer convenience and additional services, non-custodial wallets provide enhanced security and privacy.
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• Dec 26, 2021 · 3 years ago
  Custodial wallets are like having a bank account for your cryptocurrencies. You trust the bank to keep your money safe and handle transactions on your behalf. Non-custodial wallets, on the other hand, are like having cash in your own wallet. You have full control over your money and can make transactions directly without relying on a third party. It's important to weigh the convenience of custodial wallets against the security and control offered by non-custodial wallets when choosing a wallet for your cryptocurrencies.
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• Dec 26, 2021 · 3 years ago
  At BYDFi, we believe in the power of non-custodial wallets. With a non-custodial wallet, you have complete control over your funds and can be sure that your assets are secure. Custodial wallets may offer additional features and services, but they come with the risk of trusting a third party with your private keys. We recommend using a non-custodial wallet to ensure the highest level of security and control over your cryptocurrencies.
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