What are the differences between a non-custodial wallet and a custodial wallet?

3 answers

• Nov 26, 2021 · 3 years ago
  A non-custodial wallet, also known as a self-custody wallet, gives you full control over your cryptocurrency. It means that you are responsible for storing and securing your private keys, which are needed to access and manage your funds. This type of wallet provides a higher level of security and privacy since you are not relying on a third party to hold your assets. However, it also means that if you lose your private keys, there is no way to recover your funds. Non-custodial wallets are often preferred by individuals who value decentralization and want to have complete control over their assets.
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• Nov 26, 2021 · 3 years ago
  On the other hand, a custodial wallet is a wallet where a third party, such as a cryptocurrency exchange, holds and manages your private keys on your behalf. This type of wallet is more user-friendly and convenient, as you don't have to worry about storing and securing your private keys. If you forget your password or lose access to your account, the custodian can help you recover your funds. However, using a custodial wallet means that you are trusting the custodian with your assets, and they have control over your funds. It also means that you may be subject to their terms and conditions, including potential restrictions on withdrawals or trading.
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• Nov 26, 2021 · 3 years ago
  At BYDFi, we offer a non-custodial wallet solution that allows users to have full control over their cryptocurrency. With our wallet, you can securely store your private keys and have the freedom to manage your funds without relying on a third party. We believe in empowering individuals to take control of their financial future and prioritize security and privacy. Our non-custodial wallet is designed to provide a seamless and user-friendly experience while ensuring the highest level of protection for your assets.
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