What is a non-custodial wallet?

The Blockchain.com Wallet’s Private Key account is a prime example of a non-custodial wallet. Contrast this with a custodial product such as Blockchain.com’s Exchange account. While you make trades on the Exchange, Blockchain.com custodies those funds. The same applies to the Trading or Rewards accounts within your Blockchain.com Wallet.

What are the advantages of non-custodial crypto exchanges?

On the other hand, for some the responsibility and sole ownership of your crypto keys is an advantage of non-custodial exchange. By contrast, custodial exchanges, also known as centralized platforms, are very convenient (when they do not steal your money), highly liquid (when solvent) and very popular (when they work).

How does a custodial account work?

How a Custodial Account Works Once established, a custodial account functions like any other account at a bank or brokerage. The custodian—a designated manager or investment advisor—decides how to invest the money. The account manager—or other entities—can continue to contribute to the fund.

What is a crypto wallet and how does it work?

Every crypto wallet contains one or more pairs of “keys” — one public, one private, which are lengthy alphanumeric sequences, typically 25-36 characters in length. The public key is akin to a bank account number; it’s made to be shared, and anyone who has it can send crypto to the corresponding wallet.