Please correct me if am wrong. My understanding is that you control and own your cryptocurrencies in a non-custodial wallet.
Is Trustwallet a Custodial or a Non Custodial wallet?
What happens to my cryptocurrencies if a non Custodial wallet suddenly shuts down or disappears like it happened in the past with many internet investment sites?
What are the Pros and Cons of a Custodial and a Non Custodial wallet?
Thank you all in anticipation of your responses.
Custodial Wallet is a type of wallet where the service provider (Custodials) kept wallet details like private keys, recovery phrase etc. Thus, customer don’t have full access over the wallet. Free wallet, Coinbase wallet for example a custodial wallet.
On the other side, a Non-custodial wallet is a type of wallet where customer owns the private details like private keys, recovery phrase etc. For this reason, customer have full access over their wallet. Trust Wallet for example is a non custodial wallet.
Pros of Custodial Wallet
Cons of Custodial Wallet
- Custodial has FULL CONTROL IN YOUR ACCOUNT means they can see your balance, manage your balance, steal your balance (if they ran away)
- Your balance could be seized by court decision.
- If your wallet gets hacked or someone else get access to your password, they can steal your money.
- They can decide what to do and what not to do with your account.
Pros of Non-custodial wallet
- You have full access to your wallet
- No one can steal your money even if the company ran away. You can simply import the wallet to other wallet via private keys or recovery phrase
- Court has no rights to seize your money
- No one can hack your wallet until you lost or share private keys and/or recovery phrase.
Cons of non-custodial wallet
- If you somehow forget or lost the recovery phrase/ private key you will lost the account and balance in the account.
Trustwallet is a non custodial wallet.
@ahmedtanjid you have been so helpful today with your responses and I have a better understanding of things now.
Just for clarity, does it mean that if a Non Custodial wallet A shuts down, I can move all my cryptocurrencies to another Non Custodial wallet B if I have my private keys or word phrase?
Thank you so much once again
I guess in custodial wallet, you as a customer don’t have asses to operating on your phrases, recovery codes and your password WHY on your non custodial wallet, you as customer have direct asses to operating on your phrases, recovery phrases and password. Thanks just on my little idea.
First of all Thanks for your Appreciation.
Yes you can import your previous wallet to a new one and use that wallet even if the previous wallet’s developer ran away. You have full access to your account.
Thanx for the explanation on custodial and non custodial wallet
beautifully said @ahmedtanjid
So which of the custodial is really the best please?