Difference between Custodial Wallet Vs Non Custodial Wallet

Cripto Currency Investment :

Cripto currency investment we need to know this basic terms for custodial wallet and Non- Custodial wallet. These two wallets only cripto investments are keeping in to secure. 

General Term 

Custodial Means :  Responsible or guardianship to protect our fund or money or security or things etc...

Wallet Means : It means holding money and plastic cards. Nowadays wallets are using physically as well as electronic forms.

 Crypto Term

Custodial wallet is a type of digital wallet to safeguard customer's security by ways of keeping private keys to protect their assets. They have given few features for custodial wallet to take advantage over the non custodial wallets. Custodial wallet must to complete KYC after that only we can hold the securities inside. 

A Non - Custodial wallet is a decentralized wallet, where customers own their private key with contains 12 phrase words. Once lost this word they couldn't retrieve their asset. It's very complicated suppose if you forget the key.  Same way you have the full control over the funds and you can access your account in offline also.  You are the full owner and control of your funds. 

Difference between Custodial & Non-Custodial Wallet 

Difference	Custodian wallet	Non Custodian Wallet
Advantages	If crypto transfers are made within Crypto.com ecosystem, you will not be charged any fees. No major effect if you lose your private keys or recovery phrase, easy to regain access again via our support team.	You have 100% control over your crypto and your private keys. We do not require you to provide your identity so risk of data breach is lower.
Disadvantages	You need to prove your identity and perform KYC (know your customer, ID verification).Your wallet is not fully decentralized as Crypto.com is the wallet custodian.	You need to pay transaction fee as the transactions are on-chain and you have to wait for the transaction to be confirmed. If you lose your recovery phrase, you will not be able to access your wallet and crypto.
Control	Custodian or third party has control over funds	Users have control of their funds
Secure	Not very secure as keys are with a third party	Extremely secure as user have their private keys
Funds	Accounts can be restored in case of lost keys	Funds cannot be received in case of lost keys
Transaction Fee	Transaction fees are comparatively lesser	User bear the complete transaction fee
Duration of withdrawal	Slower withdrawal due to KYC/AML checks	Withdrawals are comparatively faster
Personal Data	Data breach to other party for marketing and promotional purpose	No data available to share 3rd party
Internet	For access your funding and getting corresponding detail it's required internet connection	There is no such requirement in NCW to enjoy full block chain development in real time
Wallet Examples	Free Wallet, Coinbase, Binance, BitMex, Bitgo, Blockchain.com,Cripto.com	Electrum, Exodus, Ledger Nano X, Trezor One, Zengo, Wasabi, among others.Cripto.com Defi Wallet

Custodial Wallets Examples :

 

Non- Custodial Wallets Examples: 

 

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