How do non-custodial wallets differ from custodial wallets?

3 answers

• Nov 24, 2021 · 3 years ago
  Non-custodial wallets, also known as self-custody wallets, give users full control over their private keys. This means that users are solely responsible for the security of their funds. On the other hand, custodial wallets hold the private keys on behalf of the users, providing convenience but also introducing a level of risk as the security of the funds relies on the custodian. Non-custodial wallets prioritize decentralization and security, while custodial wallets prioritize convenience and ease of use.
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• Nov 24, 2021 · 3 years ago
  When using a non-custodial wallet, you are the only one who has access to your private keys. This means that you have complete control over your funds and are not reliant on a third party to keep them safe. In contrast, custodial wallets store your private keys on their servers, which means that you are trusting the custodian to protect your funds. Non-custodial wallets offer a higher level of security and privacy, but they also require users to take responsibility for their own keys.
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• Nov 24, 2021 · 3 years ago
  At BYDFi, we believe in the power of non-custodial wallets. By using a non-custodial wallet, you can ensure that your funds are secure and that you have full control over them. We recommend that users take the time to understand the differences between non-custodial and custodial wallets and choose the option that aligns with their priorities and risk tolerance. Remember, the choice of wallet is an important decision that can impact the security of your funds.
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