View source for Custodial and non-custodial wallets

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                     |title= Custodial and Non-custodial wallets — Decimal Wiki
                     |titlemode= append 
                     |keywords= Custodial wallets, non-custodial wallets, crypto wallet
                     |description= How custodial and non-custodial wallets differ
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'''Custodial''' and '''non-custodial''' '''[[crypto wallet]]s''' are two different types of cryptocurrency wallets that offer different levels of control and [[cryptosecurity|security]].

'''Custodial wallets''', also known as '''hosted wallets''', provide storage services for [[cryptocurrency]] by a third party, usually an [[crypto exchange|exchange]] or a payment platform. Users who use custodial wallets transfer control of their [[private key]]s and funds to the third party. This means that the third party has control over access to your [[digital assets|assets]] and can perform [[transaction]]s on your behalf. While this can be convenient, especially for beginners, such wallets can be less secure as you rely on the security and reliability of the third party.

'''Non-custodial wallets''', on the other hand, offer a higher level of control and security. In this case, you have full control over your private keys and funds. '''''Non-custodial wallets store private keys directly on your device (e.g., computer or mobile device) or on a hardware wallet.''''' You do not transfer your keys to a third party and independently manage your assets. This provides a higher level of security, but such wallets may require more responsibility from the user, as you won't be able to recover access to your assets if you lose your private key.