What is a custodial wallet?

A custodial wallet, like Ceffu (formerly Binance Custody), is a service that owns the private key to your wallet and holds your assets in custody. Your regular Binance account is also a custodial wallet. In contrast, if you use a non-custodial wallet, you alone have complete control over your assets.

Should you use a non-custodial wallet?

Some non-custodial wallets allow you to stake your digital assets or put them to work through dapps. User interface (UI). You might want to test a few non-custodial wallets out or watch some YouTube videos on them before deciding on which has the UI that's right for you. Consider the following risks in using a non-custodial wallet:

Is Binance a custodial wallet?

Your regular Binance account is also a custodial wallet. In contrast, if you use a non-custodial wallet, you alone have complete control over your assets. MetaMask and Binance Chain Wallet are examples of non-custodial wallets. Both custodial and non-custodial wallets have their pros and cons.

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.