What is the difference between a custodial and non-custodial wallet?

Custodial wallets are those where you store crypto, but a third party takes responsibility for managing the private keys. That means that, unlike a non-custodial wallet, you do not exercise full control over your crypto.

Is Coinbase a non-custodial wallet?

Coinbase offers both custodial and non-custodial wallet options. The Coinbase Wallet app is non-custodial, giving users full control of their private keys. However, the Coinbase exchange platform is custodial, where private keys are managed by the company.

Is Trust Wallet a non-custodial wallet?

Yes, Trust Wallet is a non-custodial wallet. It allows users to fully control their private keys, meaning they are responsible for their own security. This gives users complete ownership of their assets without relying on a third party.

Is MetaMask a non-custodial wallet?

Yes, MetaMask is a non-custodial wallet. It allows users to manage their own private keys, giving them full control over their crypto assets. This means that users are responsible for securely storing their keys, as there is no third party involved.

Are non-custodial wallets safer?

Non-custodial wallets can be safer because they give users full control over their private keys, reducing reliance on third parties. However, the safety of a non-custodial wallet depends on how well users manage their keys and follow security practices. Without proper key management, losing access to funds becomes a significant risk.

Intermediate Archives

Q: What is a non-custodial wallet?

A wallet where the cryptocurrency holder is the only person to have access to the wallet’s private keys. This gives them and only them control over the cryptocurrency stored in the wallet.