Custodial vs Non-Custodial: who do you trust your crypto assets with?
When you create a crypto wallet or work with an exchange, it is important to understand: who controls your funds — you or someone else?
Custodial solutions
Your keys — not yours.
You trust a third party (most often — a centralized exchange) that stores your assets and manages the private keys.
Examples: Binance, Bybit, OKX.
Pros:
Convenience: recovery access via email/2FA
Support and protection against user errors
Ideal for beginners
Cons:
You do not own the private keys
Risk of account blocking or platform hacking
Non-Custodial solutions
"Not your keys — not your coins" — if you own the private key, you control your assets.
Examples: MetaMask, Trust Wallet, Ledger.
Pros:
Full control over funds
No intermediaries
Higher privacy
Cons:
Lost the seed phrase — lost access
The responsibility for security is entirely on you
Which type to choose?
For beginners and traders on centralized exchanges, custodial is suitable.
For experienced users and holders — non-custodial.
Or better — a combination of both: storing large sums in non-custodial wallets, and for trading — custodial platforms.
What approach is closer to you? Write in the comments — we will discuss. And remember: education is your best asset.
