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

3 answers

• Dec 19, 2021 · 3 years ago
  A custodial crypto wallet is a type of wallet where a third party, such as a cryptocurrency exchange, holds and manages your private keys on your behalf. This means that you don't have full control over your funds and need to trust the custodian to keep your assets safe. On the other hand, a non-custodial wallet gives you complete control over your private keys, allowing you to be the sole custodian of your funds. This provides a higher level of security and independence, but also requires you to take full responsibility for the safety of your private keys and funds.
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• Dec 19, 2021 · 3 years ago
  When using a custodial crypto wallet, you essentially trust the custodian to safeguard your assets. This can be convenient for beginners or those who prefer to delegate the security aspect to a trusted third party. However, it also means that you are relying on the custodian's security measures and policies. In contrast, a non-custodial wallet puts the control in your hands, allowing you to be in charge of your own security. This can be empowering, but it also means that you need to be diligent in protecting your private keys and taking necessary precautions to prevent unauthorized access to your funds.
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• Dec 19, 2021 · 3 years ago
  At BYDFi, we offer a non-custodial wallet solution that prioritizes security and user control. With our wallet, you have full ownership and control over your private keys, ensuring that your funds are protected and accessible only to you. We understand the importance of self-custody in the world of cryptocurrencies and strive to provide a user-friendly and secure non-custodial wallet experience for our users.
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