What is the difference between custodial vs non-custody wallets?

To summarize, the key difference between custodial vs non-custodial wallets comes down to who has control of your private keys. With a custodial wallet, a third party has control of your keys. It requires trust to keep your keys safe and secure from hackers. However, there is a higher risk of data breaches.

Where can I get a custodial wallet?

If you prefer to keep things simple and don’t mind a third party between you and your crypto, custodial wallet provider options are plentiful. In fact, most companies providing custodial wallet services are well-known and established crypto exchanges like Coinbase, Kraken and Crypto.com. What is a non-custodial wallet?

What is a non-custodial Crypto Wallet?

A non-custodial crypto wallet is a wallet where only the holder possesses and controls the private keys. For users who want full control over their funds, non-custodial wallets are the best option. Since there are no intermediaries, you can trade crypto directly from your wallets.

Are non-custodial wallets censorship-resistant?

Non-custodial wallets do not have this problem. Non-custodial wallets do not require the outsourcing of trust to an institution, so no institution can refuse to complete transactions. These transactions are essentially censorship-resistant, as the user controls the private key.