How does a custodial crypto wallet differ from a non-custodial one?

3 answers

• May 07, 2022 · 3 years ago
  A custodial crypto wallet is a type of wallet where a third party, such as an exchange or a financial institution, holds and manages your private keys on your behalf. This means that you don't have direct control over your funds and rely on the custodian to secure and access your assets. On the other hand, a non-custodial crypto wallet gives you full control over your private keys. You are responsible for storing and managing your keys, which provides you with greater security and privacy. Non-custodial wallets are often software-based and can be accessed through various devices.
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• May 07, 2022 · 3 years ago
  Custodial wallets are commonly used by beginners or individuals who prefer convenience over full control. By entrusting their private keys to a custodian, users can easily access and manage their funds without worrying about the technical aspects of wallet management. However, this convenience comes at the cost of reduced security and increased reliance on the custodian's security measures. Non-custodial wallets, on the other hand, require users to take responsibility for their own security. While this may seem daunting at first, it provides users with the ultimate control and ownership of their funds.
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• May 07, 2022 · 3 years ago
  At BYDFi, we offer a non-custodial crypto wallet that allows users to have complete control over their assets. With our wallet, you can securely store and manage your private keys, ensuring that you are the sole owner of your funds. Our user-friendly interface makes it easy for both beginners and experienced users to navigate and utilize the full potential of a non-custodial wallet. By using a non-custodial wallet like ours, you can enjoy the benefits of decentralization and maintain full control over your digital assets.
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