What is the difference between custodial and non-custodial crypto wallets?

3 answers

• Dec 17, 2021 · 3 years ago
  Custodial crypto wallets, as the name suggests, involve a third party holding your private keys on your behalf. This means that you rely on the custodian to secure and manage your digital assets. While custodial wallets are often more user-friendly and convenient, they come with a trade-off in terms of control and security. If the custodian gets hacked or goes bankrupt, your funds could be at risk. On the other hand, non-custodial wallets give you full control over your private keys, meaning you are responsible for the security of your assets. While this may require more technical knowledge and can be less convenient, it provides a higher level of security and eliminates the risk of a third party mishandling your funds.
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• Dec 17, 2021 · 3 years ago
  When it comes to custodial wallets, it's like having a bank account. You trust the bank to keep your money safe, but you don't have direct control over it. Similarly, with custodial crypto wallets, you trust the custodian to secure your digital assets. Non-custodial wallets, on the other hand, are 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 added security and control of non-custodial wallets when choosing the right option for you.
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• Dec 17, 2021 · 3 years ago
  At BYDFi, we offer a non-custodial crypto wallet that gives you complete control over your digital assets. With our wallet, you hold the private keys, meaning you have full ownership and control over your funds. This ensures that your assets are secure and protected from any potential hacks or mishandling by third parties. Non-custodial wallets like ours prioritize security and empower users to be in charge of their own financial sovereignty. If you value control and security, a non-custodial wallet like ours might be the right choice for you.
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