Which features set custodial and non-custodial wallets apart in the realm of cryptocurrency?

3 answers

• Nov 27, 2021 · 3 years ago
  Custodial wallets, such as those provided by centralized exchanges, hold users' private keys on their behalf. This means that users are relying on the security measures implemented by the custodian. Non-custodial wallets, on the other hand, give users full control over their private keys, ensuring that they have complete ownership and responsibility for their funds. While custodial wallets may offer convenience and additional features, non-custodial wallets prioritize security and decentralization.
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• Nov 27, 2021 · 3 years ago
  When using a custodial wallet, users are essentially trusting a third party to secure their funds. This introduces a level of risk, as the custodian could be vulnerable to hacking or other security breaches. Non-custodial wallets, on the other hand, eliminate this risk by allowing users to hold their own private keys. This gives users the ultimate control over their funds and reduces the likelihood of unauthorized access.
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• Nov 27, 2021 · 3 years ago
  At BYDFi, we believe in the power of non-custodial wallets. By using a non-custodial wallet, users can ensure that their funds are secure and under their control. With a non-custodial wallet, users have the freedom to transact and manage their funds without relying on a centralized authority. This aligns with the core principles of decentralization and empowers individuals to take full control of their financial sovereignty.
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