The basic difference between a Custodial Vs Non-custodial wallet is that in custodial the private key is held by a third party and in non-custodial, users are themselves responsible and in full control of their assets.
- Custodial
- The website holds the private keys
- Non-custodial
- The user holds the private keys
Examples
- Custodial wallet websites
- Free Wallet, Binance, BitMex, Bitgo, Blockchain.com
- Non-custodial wallet apps and devices
- Electrum, Exodus, Ledger Nano X, Trezor One, Zengo, Wasabi, among others
- Cryptony wallet