What are the differences between self custody and custodial wallets for cryptocurrencies?

3 answers

• Nov 23, 2021 · 3 years ago
  Self custody wallets, also known as non-custodial wallets, give users full control over their private keys and funds. This means that users are solely responsible for the security of their wallets and must take precautions to protect their keys from loss or theft. On the other hand, custodial wallets are managed by third-party service providers who hold the users' private keys on their behalf. While this may provide convenience and additional security measures, it also means that users are entrusting their funds to the custodian and may face risks associated with the custodian's security practices or potential breaches.
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• Nov 23, 2021 · 3 years ago
  When using a self custody wallet, you have complete ownership and control over your cryptocurrencies. You are the only one who has access to your private keys, which are necessary to authorize transactions. This gives you the freedom to manage your funds independently without relying on a third party. In contrast, custodial wallets offer a more user-friendly experience by handling the security and management of your private keys for you. This can be beneficial for beginners or those who prefer to delegate the responsibility of securing their funds to a trusted service provider.
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• Nov 23, 2021 · 3 years ago
  At BYDFi, we believe in empowering users with self custody wallets. By having full control over your private keys, you can ensure the highest level of security for your cryptocurrencies. Self custody wallets eliminate the need to trust a third party with your funds and give you the freedom to transact and store your cryptocurrencies as you see fit. With self custody, you are the sole custodian of your assets, providing you with peace of mind and control over your financial future.
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