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Crypto
Custodial Wallet
A wallet where a company holds your private keys for you, like how a bank holds your money.
Custodial wallets are super easy for beginners and let you recover your account if you forget your password. But if the company gets hacked or goes bankrupt, your crypto can be at risk.It's like letting a friend hold your house keys so you don't lose them — convenient but you have to trust them completely.
Real world: When you keep crypto on Coinbase or Binance, you're using a custodial wallet — the exchange controls the keys and you log in with username and password.
💡 Great for small amounts and quick trading, but move big holdings to a non-custodial wallet you control yourself.