Custodial Wallet

A custodial wallet is a type of cryptocurrency wallet where a third-party service provider holds and manages the private keys of the users' cryptocurrency holdings on their behalf. This means that users rely on the custodian to store and secure their digital assets. Custodial wallets are often provided by cryptocurrency exchanges, online wallet services, or financial institutions offering cryptocurrency custody services. While custodial wallets may offer convenience and additional features such as customer support and integration with other services, users should be aware that they have less direct control over their funds compared to non-custodial wallets, where users manage their private keys themselves.