Everyone needs to use different types of wallets to work with cryptocurrencies. Wallets are definitely needed to work in crypto. Generally we understand a wallet as a thing that stores all the savings of our daily life. By my question everyone will understand what I mean, what and which are custodial and non custodial wallets.
There are two types of wallets, custodial wallet and non-custodial wallet. Whenever you register yourself on a centralized exchange such as Binance, Bybit and buy any currency from there, it is called a custodial wallet, and when you buy cryptocurrency through Metamask or Trust wallet, it is called non-custodial wallet.
In a custodial wallet you are only given a key, through which you can access your funds, but you do not own the funds, as they are controlled by someone else. Whereas in a non-custodial wallet you are given the private keys, where you are the full owner of your fund, and the fund is at your disposal. However, even in a non-custodial wallet, you should always keep your private keys offline, to protect your funds from being stolen by hackers, because your private keys are like bank account numbers.