What is a self-custody wallet?

Let's look at self-custody wallets, how they work, and their benefits and risks. What Are Self-Custody Wallets? Self-custody wallets, also called non-custodial wallets, are digital wallets that let you store, manage, and trade cryptocurrencies without the help of a third party. They are unlike custodial wallets, which hold your private keys.

What is a custodial Crypto Wallet?

As the name suggests, a custodial crypto wallet is one where your assets are held in custody for you. This means a third party will hold and manage your private keys on your behalf. In other words, you won't have full control over your funds - nor the ability to sign transactions.

Should you use a non-custodial wallet?

When using a non-custodial wallet, users must remember that if they lose the private key, the coins in the wallet are essentially lost forever. Misplacing private keys can be a costly mistake. Users must develop a set of practices to maximize security and protect private keys in order to enjoy the full benefits of a non-custodial wallet.

Is Trust wallet a good place to start self-custodial wallets?

It seems that users are hungry for more control over their wallets and funds, and the number of self-custodial wallet users has been on the rise. If complete control over your crypto assets sounds like something you’d be interested in, then Trust Wallet is a great place to start self-custodial wallets.