Custodial vs Non-custodial Wallets: Everything You Need to Know (2025)
Custodial Wallet: Your crypto keys are held by a third party (e.g., Coinbase, Kraken). Convenient, easy to recover, but you don’t fully control your funds.
Non-custodial Wallet: You control your private keys (e.g., MetaMask, Ledger). Full ownership, access to DeFi, but responsibility for your own security.
Hybrid Approach: Many users combine both for flexibility, trading on exchanges, holding assets securely offline.