What is a non-custodial Crypto Wallet?

A non-custodial crypto wallet is a wallet where only the holder possesses and controls the private keys. For users who want full control over their funds, non-custodial wallets are the best option. Since there are no intermediaries, you can trade crypto directly from your wallets.

Who controls a crypto wallet?

The key defining characteristic between a custodial and non-custodial crypto wallet is who ultimately controls the private keys to it. A private key is the critical piece of information needed to prove who owns the wallet and, most importantly, the funds inside. Whoever holds the private key controls the wallet.

Are web-based crypto wallets custodial?

Most — but not all — web-based crypto wallets are custodial wallets, and it’s very likely that the first time you purchase crypto, it will end up in a custodial exchange crypto wallet. In this case, the exchange is your custodian, which holds your keys and is tasked with securely storing your funds.

What is a custodial cryptocurrency business?

Custodial cryptocurrency businesses are the ones that are in possession of their customers’ funds for the duration of the use of their services. What Is Custodial?