what and which are custodial and non custodial wallets.

[Do or Die]

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.

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[Catenaccio]

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.

You have private keys, you have your bitcoins.
You don't have private keys, you don't have your bitcoins.

Non custodial wallets give you private keys of your bitcoins.
Non custodial wallets are not enough, you also need those wallets are open source.

Custodial vs. Non Custodial Wallets - "Not your keys, not your coin" Explained.
Bitcoin Q&A: Not your Keys, Not your Coins

[AirtelBuzz]

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.

A crypto-wallet is a type of software. With a crypto wallet you can access the blockchain and execute transactions from there.

1: Custodial Wallet
A custodial wallet is where a third party holds private keys on behalf of users. The third party has full control over the crypto assets, taking responsibility for managing the user's wallet keys, signing transactions and protecting the user's crypto assets.
Some of the popular examples of best Custodial wallets are:

Free Wallet,
Binance,
Kucoin,
BitMex,
Bitgo,
Cobo wallet,
Gemini Wallet,
Venly Wallet,
among others.

2: Non-custodial
The main reason non-custodial wallet users have gained a huge momentum is that they provide users with a separate access to their funds. Those using non-custodial wallets do not have to look to a third party to manage funds or perform any related activities.

Some examples of best Non-custodial wallet are:
Electrum,
Exodus,
Ledger Nano X,
Trezor One,
Zengo,
Wasabi,
Metamusk,
Coinomi,
OKX,
MyEtherWallet,
among others.

[Husires]

Custodial and non-custodial wallets are not common terms that a person without cryptocurrency knowledge can learn. If you know these terms, you will definitely know their meanings. The private keys or seeds of the wallet are what determine its nature. If you are the only one who knows those seeds, generates them, and controls them, then the wallet is non-custodial.

To achieve these requirements, the Non-custodial wallet must be open source, well reviewed, sufficiently cryptography random, have the option to withdraw, and have no restrictions on the ability to send. Otherwise, you cannot guarantee that you are the only one capable of generating the private key.

[mk4]

Short answer:

• Custodial: a company will have control over your funds
• Non-custodial: only you have control over your funds

Long answer (I suggest reading it): https://chainsec.io/wallets

[Zaguru12]

Some examples of best Non-custodial wallet are:
Electrum,
Exodus,
Ledger Nano X,
Trezor One,
Zengo,
Wasabi,
Metamusk,
Coinomi,
OKX,
MyEtherWallet,
among others.

I wouldn’t say these are the best Non custodial wallets but probably they are the some of the best out. Firstly the OKX included there is an exchange and not a non custodial wallet AFAIK. There also other wallets there that are not open source and that doesn’t make them one of the best. When recommending wallets that are open source and non custodial I will suggest wallets like
Bitcoin core
Electrum
Trezor
Passport
samourai
BlueWallet
Unstoppable


And any other wallet. OP should know that an open source wallet doesn’t mean it is immune to hack attack but rather the source code are open to the public to review and should the developers tried to temper with anything tech savvy people will be able to see it.

[sunsilk]

mk4 has given the brief description and differences of custodial and non custodial wallets. And just for the sake of newbies that don't understand about controlling your funds.

It's about that you have the private keys for your wallets and centralized exchanges don't provide it for us.

Some examples of best Non-custodial wallet are:
Exodus,
Coinomi,

Still need to do some research about some critical issues from these wallets.

Metamusk,

It's Metamask mate.

[Charles-Tim]

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.

With custodial wallet, you do not have the seed phrase and the keys. Like Coinbase.com or the Freewallet. Only what you will use to access your wallet is just email and password.

With noncustodial wallet, you will have your seed phrase and your keys. The seed phrase is used to generate the keys and addresses and you only need the seed phrase to recover your wallet. They are also called self-hosted wallet.

@AirtelBuzz
Know that centralized exchanges are different from custodial wallet. Although, centralized exchanges have their own custodial wallet which they keep customers funds as well. Binance, OKX Kucoin and BitMex are exchanges. Also know that Exodus and Coinomi are close source and not recommended.

[Amphenomenon]

By my question everyone will understand what I mean, what and which are custodial and non custodial wallets.

As a child you can give your parents your money to hold for you freely but when it's time to collect them, they give you in their terms and conditions in which you don't have a choice than to accept or your money will be gone for ever. This is similar to the custodian wallets you have the coins but in control of it because not your key not your wallet .
While being a grown up and so being able to have your own personal account without the dependency on your parents run anyone to keep your money, by which you can save and get your money as it pleases you without the control of your parents or anyone. This is similar to the Non-custodian wallets, you are in control of your key and so you are in control of your wallet.

[Lamkuthang]

Short answer:

• Custodial: a company will have control over your funds
• Non-custodial: only you have control over your funds

Long answer (I suggest reading it): https://chainsec.io/wallets

Yea, Simple answer from you sir, Wallet is an electronic service for storing payment instrument data, for example, transfers from your exchange to another wallet are recorded as sales. Well what other great options to buy and hold for investors or traders are hardware wallets or others. I think Trezor is the most popular at the moment.

[JeromeTash]

-snip-

I wouldn’t say these are the best Non custodial wallets but probably they are the some of the best out. Firstly the OKX included there is an exchange and not a non custodial wallet AFAIK. There also other wallets there that are not open source and that doesn’t make them one of the best. When recommending wallets that are open source and non custodial I will suggest wallets like
Bitcoin core
Electrum
Trezor
Passport
samourai
BlueWallet
Unstoppable


And any other wallet. OP should know that an open source wallet doesn’t mean it is immune to hack attack but rather the source code are open to the public to review and should the developers tried to temper with anything tech savvy people will be able to see it.

It looks like our friend Mr AirtelBuzz does not know English so well and also has no much knowledge about custodial and noncustodial wallets. He therefore decided to use AI to generate text for him to post here, and in the process he ended up posting wrong information.
This is why use of AI to make posts in the forum should be completely discouraged.

[Doan9269]

a wallet as a thing that stores all the savings of our daily life.

Wallet don't store our bitcoin, the blockchain does, wallet only helps us with having the required access pass to get hold of our bitcoin on the blockchain and not that our bitcoin is stored in them,

By my question everyone will understand what I mean, what and which are custodial and non custodial wallets.

A custodial wallet holds your private keys with them, this also means that the access keys required to use in getting hold of your bitcoin on the blockchain is with the exchanges.

A none custodial wallets is just a direct opposite of what I've been just explained here, you're in charge yourself in having access to your private keys with you.

[ZAINmalik75]

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.

You can easily found a list of custodial and non custodial wallets if you would have searched on google but if you wanted to get information from us then a simple rule is if a wallet is providing you the seed phrase of your wallet then its non custodial and if it don't provide any seed phrase then its custodial wallet.

For example Electrum for storing BTC or Trust wallet for storing any type of token.

And keep one thing in mind that, our assets are not saved in any wallet instead they are saved in our seed phrase or recover phrases. And once those seed phrases are gone our assets are also gone. But if the wallet is gone our assets still remains.

[The Cryptovator]

Custodial means coins aren't under your control; non-custodial means you are the owner of your funds and you can do whatever you want. Based on this, we may need a different wallet for each individual. Like when we intend to trade on a centralised exchange, we have to move the funds there. Keep in mind that funds aren't safe to exchange and move them to your non-custodial wallet after trading. For long-term holding, we must have a non-custodial wallet. For best practices, I always advise using a hardware wallet as a non-custodial wallet. You have to learn and study more to realise what type of wallet you actually need.

[hd49728]

Like when we intend to trade on a centralised exchange, we have to move the funds there. Keep in mind that funds aren't safe to exchange and move them to your non-custodial wallet after trading.

Reminder: do not keep your money in online accounts

Storing money in online accounts, in centralized exchanges is risky. They only give us public addresses but don't give us private keys. Without private keys, they control our funds. Even they share private keys with us, a user is no longer the only person who controls the private key, the exchange has it too. With this, a private key is no longer a private key and exchange co-control our funds, it's risky.

For long-term holding, we must have a non-custodial wallet. For best practices, I always advise using a hardware wallet as a non-custodial wallet. You have to learn and study more to realise what type of wallet you actually need.

Hardware wallets are close source and open source. Choose open source ones to use is better.

[LIST] Open Source Hardware Wallets

[Saint-loup]

By my question everyone will understand what I mean, what and which are custodial and non custodial wallets.

A custodial wallet holds your private keys with them, this also means that the access keys required to use in getting hold of your bitcoin on the blockchain is with the exchanges.

A none custodial wallets is just a direct opposite of what I've been just explained here, you're in charge yourself in having access to your private keys with you.

So how do you call a wallet that give you your private key and let access your funds and do whatever you want through this way but which is also managed by a company able to access your funds and your private key? I mean blockchain.com is an online wallet, managed by company but they give you the seed of your wallet and the private keys of your addresses too.

[Kelward]

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.

As a newbie, your question is very valid, as this is one of the most important things that you need to understand.

A custodial wallet is the one that you open in an exchange, and they will manage the account for you. They have access to it, therefore, you're not in total control of the coins inside. It is not advice able to leave all your crypto coins in an exchange, because if the exchange folds up or is scammed, your crypto asset will be affected. It is said that if it's not your keys, then it's not your coin. This saying is only applicable in custodial wallets.

A none custodial wallet, is the one that you have control over, it's your passwords and your seed phrase, therefore you have full autonomy over it. It is decentralized, so no third party can access your wallet, except you misplace your passwords or seed phrase, or if they are compromised. So it's very important to keep your passwords and seed phrase in a very secured place, so scammers will not see them and access your wallet.

[Samlucky O]

Costodial wallet are wallet controlled by some Crypto exchange, which have total access of the coin sent to it, and the private key is held by the Crypto exchange which is also called (CEX) Centralized Exchange.

Non custodiall wallet are wallet use by an individual, which does not require a third party for transportation. Which users has total control over it. Each individual has it private keys. And it's otherwise know as (DEX) Decentralized Exchange

[Text]

Custodial
> Third-party (exchanges/service provider) private key control
- the user does not have direct control over private keys   

> Less secure
- willing to trust a third party to manage your keys securely on their own server   

> The custodian is responsible for backup   


Non-Custodial
> User private key control (full/complete control)
- responsible for storing and securing the keys

> More secure
- higher level of security, minimize the risk of hacking or unauthorized access

> User is responsible for backup
- decentralized and self-managed option

[hd49728]

Costodial wallet are wallet controlled by some Crypto exchange, which have total access of the coin sent to it, and the private key is held by the Crypto exchange which is also called (CEX) Centralized Exchange.

Costodial wallet, the name means I have to pay cost to have costodial wallet?

Your post contains wrong information too. If you open your account on one exchange and use a public address to receive (deposit) your coins into that account, you don't control private keys, mnemonic seed of that wallet.

That specific exchange controls it, not some crypto exchanges (like you write). Each exchange control their customer wallets' private keys/ mnemonic seed and other exchanges can not control it, users can not control it too.