What are the differences between a self custody wallet and a custodial wallet in the world of digital currencies?

3 answers

• Dec 16, 2021 · 3 years ago
  A self custody wallet, also known as a non-custodial wallet, gives users complete control over their digital assets. With a self custody wallet, users hold their private keys and are solely responsible for the security and management of their funds. This provides a higher level of ownership and control, but also requires users to take extra precautions to protect their private keys from loss or theft.
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• Dec 16, 2021 · 3 years ago
  On the other hand, a custodial wallet is managed by a third-party service provider, such as a cryptocurrency exchange. In this case, users do not have direct control over their private keys. Instead, the service provider holds the keys on behalf of the users. While this may offer convenience and ease of use, it also means that users are relying on the security measures implemented by the service provider. It's important to choose a reputable custodial wallet provider to ensure the safety of your funds.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we believe in empowering users with self custody wallets. By holding your own private keys, you have full control over your digital assets and are not dependent on any third-party service. This aligns with the decentralized nature of cryptocurrencies and ensures that you are the sole owner of your funds. However, we understand that custodial wallets can be a suitable option for beginners or those who prefer convenience over complete control.
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