what and which are custodial and non custodial wallets.

[promise444c5]

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.

Let me put it  this way:

From the word Custody: temporarily possession
custodial wallets
This means a third party has a temporarily  possession of your assets  in which you could perform  transactions at your convenient time but have to pass through  the third party  confirmation before  transaction  of funds

Non Custodial wallets
self custody : no possession  of third party

This means users have full control  over their  assets  and are responsible  for any action  taken on such wallet either positive  or negative.

Unlike  custodial  users Don need any confirmation  from third party to perform transactions.

[HONDACD125]

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.

[Ruttoshi]

Custodial wallet is from a closed source where you are not allowed to control your own keys yourself but a third party controls it for you. Let me say that it is centralized. In a custodial wallet you are vulnerable to attack.

A noncustodial wallet is the opposite, it is an open source and only you have your keys, you are your own bank and you are in charge of the security of your wallet.

It is advisable to use a noncustodial wallet for proper security of your assets and for you to have full possession of your coins. The most safe noncustodial wallet is a hardware wallet because it is air gap and that is why a cold storage wallet is also safe because you need to generate the keys on an air gap device and never connect it to the internet.

[Abu-Naim]

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.

Just as the word implies; custodial and non custodial wallets; the two are both wallets but have opposite functions.

In custodial wallets, the company or third party that own the wallets control your Bitcoin, while
In Non custodial wallets, you are your own bank, you own and control your wallet security (private key) which means you are the person controlling your bitcoin.

Advisably, for security and privacy, use an open source non custodial wallets to keep your bitcoin safe.

[hd49728]

A noncustodial wallet is the opposite, it is an open source and only you have your keys, you are your own bank and you are in charge of the security of your wallet.

Not all non-custodial wallets are open source!

It is best if you choose a non-custodial, open source wallet to store your bitcoin or cryptocurrencies but as I am correcting you, not all non custodial wallets are open source.

Examples of non custodial wallets, but not open source wallets are
Atomic wallet
Exodus wallet

[cryptoaddictchie]

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.

Its just a difference between the wallets that one you can control and it isnt. Custodial are more likely exchange wallets and some private company with wallet features and non custodial are the one you hold your own keys which no one cant access too. Best exmaple of these are metamask, rabbit and many more. People tends to use that for a safer storage.

[Luffygroove]

It's like this: a non-custodial wallet is like having your own key to your house, you have control. You can keep your private key, which is like the key to your crypto assets. It's in your hands, so you're in charge and responsible. On the other hand, a custodial wallet is more like a bank where they hold your key. You don't have that direct control; someone else does. So, if you prefer having your own key, go for non-custodial. It's like holding the reins of your financial house, giving you autonomy and ownership in the crypto world.