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Custodial vs. Non-Custodial Wallets: What's the Difference?


  • Learn what is a custodial wallet
  • Learn what is a non-custodial wallet
  • Learn the difference between custodial and non-custodial wallets
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What is a custodial cryptocurrency wallet?

A custodial bitcoin wallet is one in which your private keys are maintained and managed on your behalf by a third party. In other words, the owner of such a wallet lacks complete control over their funds and is unable to sign transactions.

What is a non-custodial cryptocurrency wallet?

Users can own and control their private keys with a non-custodial wallet. This option is best suited for those who must handle their cash. Owners of non-custodial wallets can trade cryptocurrencies directly because there are no intermediaries in this instance. 

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