Wallets, Security & Custody

What is the difference between a custodial and a non-custodial wallet?

A custodial wallet is one where a third party, such as an exchange, holds and controls the private keys on your behalf, while a non-custodial wallet gives you sole control of your own keys. With a custodial wallet you rely on the provider's security and can usually recover access through them; with a non-custodial wallet you alone are responsible for safeguarding the keys. For example, leaving funds on an exchange is custodial, whereas a hardware wallet you control is non-custodial. The trade-off is convenience and recoverability versus full self-sovereignty.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.