@arcanesoul

Custodial wallets entrust private keys to a third party, offering convenience but risking centralized control and potential hacks. Users rely on the provider’s security measures, which may include insurance or multi-factor authentication, but lose autonomy over their assets. Non-custodial wallets, where users manage their keys, provide full control and privacy but require self-responsibility for key storage. While they eliminate third-party risks, losing keys means permanent asset loss. The trade-off hinges on balancing convenience and security, with non-custodial solutions favoring privacy-conscious users and custodial ones appealing to those prioritizing ease of use.

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