What is a non-custodial exchange?

A non-custodial exchange is a type of exchange that does not store users’ funds. That is, it does not hold the users’ private keys. In such an exchange, users do not need to verify their accounts before they can enjoy the services of the exchange. So, users neither provide any delicate personal information nor leave their funds with the exchange.

What are the advantages and disadvantages of a custodial exchange?

The exchange holds all of the liability to protect the funds from hackers NOT the user. A Custodial exchange almost ensures the crypto investment is a more seamless experience. Disadvantages of Custodial Exchanges

What are the different types of exchanges?

There are two types of exchanges, Custodial and Non-Custodial Exchanges. Non-Custodial Exchanges don’t have custody of their users’ money. On this exchange traders have complete ownership and responsibility for their money. They are individually liable to keep their money secure at all times.

Are all non-custodial exchanges decentralized?

While almost all decentralized exchanges can be considered non-custodial, not all non-custodial exchanges can be regarded as decentralized. Furthermore, while decentralized is a great word, its meaning has been softened a little in recent years as the term has often been used quite broadly.