What are cryptocurrency custody solutions?

Cryptocurrency custody solutions are independent storage and security systems used to hold large quantities of tokens. Custody solutions are one of the latest innovations to come out of the cryptocurrency ecosystem and have been expected to herald the entry of institutional capital into the industry.

What is a non-custodial exchange?

Non-custodial exchanges, also known as DEX, are completely different to custodial ones like Coinbase and Binance. Using a DEX is more complicated than custodial services like Binance and Coinbase, but they’re becoming increasingly popular in the crypto community. But if using a DEX is more difficult, why do people use them?

How do custodial exchanges work?

When you purchase crypto on a custodial exchange, the transactions are not written onto the blockchain. Instead, transfers are carried out between balances of accounts held by users in the exchange’s own wallet. The balances of users are all linked to the exchange’s wallet.

Are non-custodial services secure?

Hackers: Non-custodial services are decentralized which makes them more resistant to hackers than custodial exchanges and wallets. As you can see, non-custodial services provide a layer of security and safety that you won’t get when using a custodial wallet or exchange.