What matters in a non-custodial exchange?

What matters is whether the exchange is custodial or non-custodial. What does that mean? A custodial exchange is one where the exchange HOLDS YOUR MONEY. A non-custodial exchange DOES NOT HOLD YOUR MONEY.

What is a custodial exchange?

Custodial Exchanges hold multiple users’ funds. Custodial exchanges technically have custody of their users’ funds and are mostly responsible for keeping it secure. Examples of Custodial exchanges are Binance, Bittrex, and GDAX to name a few. What are the advantages and disadvantages of the two different types of exchanges?

What is a decentralized or non-custodial exchange?

Decentralized or non-custodial exchanges are those that discard the need for third-party involvement in crypto trade. They facilitate peer-to-peer transactions between users automatically, offer no personal information requirements, and other features promoting decentralization.

What is a non-custodial wallet?

MetaMask and Binance Chain Wallet are examples of non-custodial wallets. Both custodial and non-custodial wallets have their pros and cons. Let's explore their differences so you can learn when to use one type or the other. If you've ever used Bitcoin or other cryptocurrencies, you know that having a digital wallet is essential.