Custodial Wallet
wallet · security
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.
The wallet types and custody guide compares these arrangements before you choose a setup.
Related terms
Wallet
→Software or hardware that manages signing credentials, addresses, transactions, and access to blockchain assets.
wallet · security
Cryptocurrency Exchange
→A cryptocurrency exchange is a platform for buying, selling, or trading digital assets through crypto or fiat markets.
trading · exchange · platform
Private Key
→Secret cryptographic material used to produce signatures or other authorization proofs.
cryptography · security · wallet