Crypto Wallets: Custodial vs. Non-Custodial

A crypto wallet manages the keys used to access digital assets. The two main approaches are custodial and non-custodial storage.

Custodial wallets

An exchange or service holds the keys on your behalf. This can be convenient, but access depends on the provider’s security, policies, and availability.

Non-custodial wallets

You control the keys directly. This provides greater independence but also greater responsibility. Back up recovery phrases offline, never share them, and verify addresses before sending funds.