Custodial Wallet
A wallet where a third party controls the private keys on your behalf.
In a custodial wallet, a service provider holds users’ private keys and executes transactions upon instruction. This can simplify UX and recovery but introduces counterparty and platform risk.
Non-custodial wallets give users sole control of keys. The trade-off: higher responsibility but no third-party custody risk.
Related terms
3 linkedExplore connected entries beyond the alphabetical index.
Wallet
→Software or hardware that manages crypto keys, creates addresses, signs transactions, and shows blockchain activity.
Cryptocurrency Exchange
→A cryptocurrency exchange is a platform for buying, selling, or trading digital assets through crypto or fiat markets.
Private Key
→A cryptographic key used to sign blockchain transactions and derive public keys; ultimate proof of control over funds.
All terms and definitions may update as the Cryptionary improves.
