How does a non custodial crypto wallet differ from a custodial wallet?

3 answers

• Dec 16, 2021 · 3 years ago
  A non custodial crypto wallet, also known as a self-custody wallet, allows users to have full control over their private keys and funds. This means that the user is solely responsible for the security and management of their wallet. On the other hand, a custodial wallet is managed by a third party, such as a cryptocurrency exchange. The exchange holds the user's private keys and manages the security and storage of the funds. While custodial wallets may offer convenience and additional services, they also introduce a higher level of risk as the user is relying on the security measures implemented by the third party.
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• Dec 16, 2021 · 3 years ago
  When using a non custodial crypto wallet, you are in complete control of your funds. You have the freedom to manage your private keys and can choose to store them offline for added security. With a custodial wallet, you are entrusting your funds to a third party, which may provide additional features like easy conversion between different cryptocurrencies or integration with other services. However, this also means that you are relying on the security measures and trustworthiness of the custodian. It's important to weigh the pros and cons before deciding which type of wallet is right for you.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we believe in the power of non custodial wallets. By using a non custodial wallet, you can ensure that your funds are secure and under your control. With a custodial wallet, you are relying on the security measures implemented by the exchange, which may be vulnerable to hacking or other security breaches. We encourage our users to take control of their own private keys and use non custodial wallets to protect their funds.
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