What are the differences between custodial and non-custodial cryptocurrency wallets?

3 answers

• Dec 16, 2021 · 3 years ago
  Custodial cryptocurrency wallets are wallets where a third party, such as a cryptocurrency exchange, holds the user's private keys. This means that the user does not have full control over their funds and relies on the custodian to secure and manage their wallet. Non-custodial wallets, on the other hand, give users full control over their private keys and funds. This provides a higher level of security and privacy, as the user is not dependent on a third party. However, non-custodial wallets also require users to take responsibility for the security of their own private keys.
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• Dec 16, 2021 · 3 years ago
  When using a custodial wallet, users can benefit from the convenience of easily accessing their funds through the exchange platform. They don't need to worry about managing private keys or the technical aspects of wallet security. However, this convenience comes at the cost of trusting the custodian with their funds. In contrast, non-custodial wallets require users to take more responsibility for their own security. Users must securely store their private keys and be cautious of phishing attempts or malware that could compromise their funds.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we offer a non-custodial wallet solution that allows users to have full control over their funds. With our wallet, users can securely store their private keys and have peace of mind knowing that they are the sole custodians of their funds. This provides an added layer of security and privacy, as users are not relying on a third party to safeguard their assets. Additionally, our wallet is user-friendly and provides a seamless experience for managing and transacting with cryptocurrencies.
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