Custodial vs. Non-Custodial Wallets: What’s the Difference?
Ever wondered how and where your crypto is stored? There are many different types of crypto wallets that token holders can use to store crypto. But, they can generally be split into two broad categories: custodial and non-custodial wallets.
A custodial wallet, like myDAPPwallet or Ceffu (formerly Binance Custody), is a service that owns the private key to your wallet and holds your assets in custody. Your regular Binance account is also a custodial wallet. In contrast, if you use a non-custodial wallet, you alone have complete control over your assets. MetaMask and Binance Chain Wallet are examples of non-custodial wallets.
Both custodial and non-custodial wallets have their pros and cons. Let’s explore their differences so you can learn when to use one type or the other.