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.
All terms and definitions may update as the Cryptionary improves.