What are the differences between custodial and non-custodial wallets for cryptocurrencies?

3 answers

• Dec 28, 2021 · 3 years ago
  Custodial wallets are wallets where a third party, such as a cryptocurrency exchange or wallet provider, holds the private keys on behalf of the user. This means that the user does not have full control over their funds and must trust the custodian to keep their funds secure. Non-custodial wallets, on the other hand, give the user full control over their private keys, meaning they have complete ownership and responsibility for their funds. While custodial wallets may offer convenience and additional features, non-custodial wallets provide enhanced security and privacy.
  575288
• Dec 28, 2021 · 3 years ago
  Custodial wallets are like having a bank account for your cryptocurrencies. You trust the bank to keep your funds safe and secure, but you don't have direct control over your money. Non-custodial wallets, on the other hand, are more like having cash in your pocket. You have full control over your funds, but you also bear the responsibility of keeping them safe. It's important to weigh the convenience of custodial wallets against the security and control offered by non-custodial wallets.
  491164
• Dec 28, 2021 · 3 years ago
  At BYDFi, we believe in empowering our users with full control over their funds. That's why we offer non-custodial wallets that give you complete ownership and control over your private keys. With a non-custodial wallet, you can be confident that your funds are secure and that you have full control over your financial future. Take control of your cryptocurrencies with BYDFi non-custodial wallets today!
  405102