Personally, these two types of wallets are very well used by crypto users, although in practice many crypto holders use these two wallets for different conditions or purposes. which type of wallet do you prefer custodial or non custodial wallet.
What is the difference between Custodial Wallet and Non-Custodial Wallet?
- Thread starter Suba
- Start date
The difference between custodial wallet and non-custodial wallet is the difference between keeping your money in a bank and keeping it in your own home. When you have money in your home, you have full control, that's non-custodial wallet.
- Thread starter
- #6
Having full control is also very risky, if the private key is lost then it cannot be accessed and your crypto is lost. My experience with the Atomic wallet, after changing my smartphone because it was damaged, I can't open the Atomic wallet, even though the private key has been recorded in an offline book, I also save a backup in the form of printed paper. but always wrong and lost crypto balance even if only 10$.
- Thread starter
- #8
That is one of the disadvantages of a self-custodial wallet, including not being user-friendly. There are often problems that beginners can't solve, Private keys become a problem if an error occurs.
That's true. If you get locked out of Binance, you can request password change and easily get back to your account. But if you lose your Trust wallet seed, you will also lose access to your funds. You should be really careful about saving your seed phrase.
- Thread starter
- #10
I also use several Custodial wallets like Coinbase, Uphold, HolyTransaction, Blockchain.com, Coinpayments.net. But those who have full control over the crypto that we have, we also need KYC, higher admin fees, also if there is a problem then the crypto that we have can be frozen at the request of the government.