Difference Between Custodial And Non- Custodial Wallets

[Dorjoy12 8962]

24 minutes ago, Ridam said:

And Don't forget about Yobit 😊 if you like Trading with huge other benefits and features

@Ridam yobit is my first exchange site by which i start my crypto trading but yobit not yet provide future, margin and p2p trading for us that is why some yobit user now shift to another exchange site..  That is why i think yobit authorities should look this matter..   And still yobit my favourite exchange..             

[setifien 1016]

2 hours ago, Immi Malik said:

As I know custodial wallets are those which do not provide any private keys to its users but non custodial wallets are those which provide private keys to its users when they sign up in the wallets. 

Yes, that's right, custodial wallets (that do not provide private keys) but instead of that they give their users the opportunity to backup their wallets (mostly using a phrase of 12-24 words)

[Ridam 7455]

17 hours ago, Dorjoy12 said:

@Ridam yobit is my first exchange site by which i start my crypto trading but yobit not yet provide future, margin and p2p trading for us that is why some yobit user now shift to another exchange site..  That is why i think yobit authorities should look this matter..   And still yobit my favourite exchange..             

Well I don't know about others But I only trade spot so Margin, future, leverage seems to be mess for me and I don't need such Features Currently. You know I'm still learning and leverage will add extra load and risk to my investment which I don't like.

That's why I do love yobit and I also use Binance as I'm holding some coins that aren't listed currently on Yobit.

17 hours ago, setifien said:

Yes, that's right, custodial wallets (that do not provide private keys) but instead of that they give their users the opportunity to backup their wallets (mostly using a phrase of 12-24 words)

It seems you got it wrong bro, The phrase you are referring is list of words from which Private keys can be generated and for users ease most of the today's Wallet provide seed phrase. It's same as Private kye but in different forms. And those wallets that provide such phrase are Non- Custodial Wallets.

Custodial Wallets doesn't provide seed phrase or Private key. Instead users need email and password for login.

[Dorjoy12 8962]

1 hour ago, Ridam said:

You know I'm still learning and leverage will add extra load and risk to my investment which I don't like.

@Ridam  leverage trading is  a name of fear to me because it cost huge lose than any other trading you know brother..  All the leverages token trading based on some 3x profit as well 3x lose..   But its not a big problem for them who able to catch out the market movement perfectly..      

[Ridam 7455]

1 hour ago, Dorjoy12 said:

@Ridam  leverage trading is  a name of fear to me because it cost huge lose than any other trading you know brother..  All the leverages token trading based on some 3x profit as well 3x lose..   But its not a big problem for them who able to catch out the market movement perfectly..      

More risk more Reward. Simple theory in leverage Trading bro. But leverage is very risky in market like Crypto which is already huge volatile, leverage adds some more opportunity with great risks.

There are leverage token in Binance for most Currency in spot Trading. Eth up/down, ltcup/down and many more. Check them they do move really high if there is movements in base Currency.

[Dorjoy12 8962]

3 hours ago, Ridam said:

There are leverage token in Binance for most Currency in spot Trading. Eth up/down, ltcup/down and many more. Check them they do move really high if there is movements in base Currency

I still confused about how the spot trading work so not yet try this one..  Can you please explain me clearly about spot trading and what is the easy method to get profit from there @Ridam?   I feel boring to do day trading as well long term trading..        

[Rozy 1918]

Very informative post, thanks for sharing, what I want to add here is the minute you decide to deposit your money online, regardless of the safety measures you take, you should accept that there is a possibility of losing all of it or just a part, so whether your wallet is Custodial or noncustodial think twice, yet I prefer noncustodial wallet, and it is just a personal preference not an advice. 

[Calvinpriva 17296]

Perfect. @Ridam I liked how you explained these differences simply, it's true a lot of members didn't know the difference between custodial and non-custodial wallets, they use any wallets to store their coins without caring about security. Non-custodial wallets are the best because they provide private keys, some of them use biometric security as well, which is good for the safety of our coins. Some members still don't know the difference between exchanges and wallets, perhaps you can write another good topic to help them about that 😊.

[MisbahJam 801]

Custodial wallets are those which provides the private key to the users.when you deposit your assets in this you need to trust the company of wallet.for example the Blockchain wallet.

Non-custodial wallet are those which provide the private key before to sign up.The best example of non-custodial wallet are Hardware Wallet.

[Ridam 7455]

15 hours ago, Dorjoy12 said:

I still confused about how the spot trading work so not yet try this one..  Can you please explain me clearly about spot trading and what is the easy method to get profit from there @Ridam?   I feel boring to do day trading as well long term trading..        

Bro, Spot Trading refers to the Trading that is normally done in any exchanges like Yobit. Spot is without leverage. Day trading can be done in spot way or using Leverage.

For getting profit, You should start your research and improve TA and FA bro. I am also in learning phase and I'm making some trades with small risk these days.

11 hours ago, Calvinpriva said:

 they use any wallets to store their coins without caring about security. Non-custodial wallets are the best because they provide private keys, some of them use biometric security as well, which is good for the safety of our coins. Some members still don't know the difference between exchanges and wallets, perhaps you can write another good topic to help them about that 😊.

Exactly bro you got why I created this topic. And sure I will create a topic describing about the exchange and Wallet difference in coming days. As a whole we need to share what we know to other members.

[Yomose 3704]

On 12/9/2020 at 2:07 PM, Merhonisa1122 said:

custodial wallet is a digital wallet.this wallet keeps private keys and back up system.custodial wallets are used in exchanging.in non custodial wallets the customers keeps it's own private keys.this wallet is used for full control over our funds.

Custodial wallets do not keep private key, companies providing the custodial services do not also give user private key, all users have is only addresses. Noncustodial wallet gives full control like you meant because it is users that will generate they private key themselves which means they are having full control of he wallet as they have the private key. 

[Dorjoy12 8962]

2 hours ago, Ridam said:

Bro, Spot Trading refers to the Trading that is normally done in any exchanges like Yobit

@Ridam actually i knew the meaning of spot trading bro but whenever i click on spot trading i face 3 interface such as    basic, classic and advance..  But you have explained only about  basic trading..  By the way,  spot classic trading asked us to choice market order and limit order.. What is it mean actually??  

[Frodler 943]

On 12/3/2020 at 10:28 AM, Ridam said:

Custodial wallets are those centralised wallets that do not provide the private keys to the user. It means when you deposit  certain amount of cryptocurrency in the wallet you need to trust the company of wallet you are choosing and if the company get attacks and the private keys get affected your fund will be in danger. You will be signned up through Email Adress and Password. For more security you can use 2FA or Google Authenticator.

The best example of custodial wallets is Blockchain wallet.

For centralised exchanges they also do provide the same custodial service for our funds.

PS- 

I see a lot of people are referring Coinbase Exchange as an wallet. Please keep in mind Coinbase has a non-custodial wallet but "Coinbase" is an Exchange.

 

Well I must affirm that I just know about these for the first time, but my question is that @Ridamcould we actually classify our wallets on the yobit exchange site as a custodial wallet? 

[Ridam 7455]

13 minutes ago, Frodler said:

Well I must affirm that I just know about these for the first time, but my question is that @Ridamcould we actually classify our wallets on the yobit exchange site as a custodial wallet? 

Yes Yobit exchange Wallet is custodial Wallets and all the centralised exchanges like Coinbase, Binance, wallets are custodial.

But it doesn't means you need to worry and withdraw your funds from exchange. All exchanges do offer various security measures so these are pretty secured. 

If you are long term Hodling large amount of Crypto, then non-custodial specially hardware Wallets should be your first priority.

[Yomose 3704]

22 hours ago, Madhia Ali said:

Custodil wellet are those wellet which don't provide key to its user

On the other hand

Noncustodial are those wellet which provides key to its user.

Not that custodial wallet do not provide keys, it provide public keys and addresses which are actually keys also. But it does not provide private keys, and private keys are very important as it is used to unlock funds on blockchain. 

[Cleaner 2549]

On 12/11/2020 at 1:19 AM, Calvinpriva said:

Perfect. @Ridam I liked how you explained these differences simply, it's true a lot of members didn't know the difference between custodial and non-custodial wallets, they use any wallets to store their coins without caring about security. Non-custodial wallets are the best because they provide private keys, some of them use biometric security as well, which is good for the safety of our coins. Some members still don't know the difference between exchanges and wallets, perhaps you can write another good topic to help them about that 😊.

@Calvinpriva...I also didn’t know about the differences in the wallet.  But today I found out about it.  However I use a non-custodial wallet.  Because it is very safe and secure.  Here I can give the security in biometric system. So that no one can enter my wallet except me.

[GanBin 705]

On 12/11/2020 at 8:06 AM, Ridam said:

Exactly bro you got why I created this topic. And sure I will create a topic describing about the exchange and Wallet difference in coming days. As a whole we need to share what we know to other members.

It can be good to create the difference between wallet and exchanges on the coming days but I think there are topics like that already on this forum while many people are going for wallets because exchanges are risky if compared to wallet. And as for noncustodial wallet, it is just the best. 

[Calvinpriva 17296]

Yeah @Cleaner, non-custodial wallets are more secure because of their security features. I like those wallets which supports biometric security because know one who can access your wallet with that security feature.

[Cleaner 2549]

2 minutes ago, Calvinpriva said:

Yeah @Cleaner, non-custodial wallets are more secure because of their security features. I like those wallets which supports biometric security because know one who can access your wallet with that security feature.

@Calvinpriva...If you are looking for a wallet for biometric security then you can use Coinbase Wallet.  This wallet is very safe and secure.  I have been using this wallet for many years, but to date I have not had any problems.  So we can all use non-custodial wallets to keep crypto coins.

[nykas 2812]

I prefer non-custodial wallets, because I feel more freedom when I use them, because I have my own private key and can import this wallet to other places 

[Ridam 7455]

On 12/12/2020 at 4:58 PM, Cleaner said:

@Calvinpriva...If you are looking for a wallet for biometric security then you can use Coinbase Wallet.  This wallet is very safe and secure.  I have been using this wallet for many years, but to date I have not had any problems.  So we can all use non-custodial wallets to keep crypto coins.

Well there are plenty of Non-custodial Wallets out there. I have used coinbase Wallet but now I mostly preferred Trust and Atomic wallet for most Hodling.

Coinbase Wallet is also great wallet and as it's the product of Coinbase Inc we get brand assurance too while using it.

18 hours ago, nykas said:

I prefer non-custodial wallets, because I feel more freedom when I use them, because I have my own private key and can import this wallet to other places 

That's the benefits of Non-custodial Wallets. You can import any Wallet into another Wallet.If you are using Atomic Wallet to store funds then you can use same private keys to import your account in Trust Wallet which we can't do in Custodial Wallets.

[Yomose 3704]

On 12/12/2020 at 9:03 AM, Immi Malik said:

Custodial wallets are those which does not provide any private keys to user when he is signing up on that wallet while non custodial wallets are different from custodial wallets and provide private keys to its users. 

Which means it is good to go for noncustodail wallets as it provides private keys unlike custodial wallet that only provide no private key because private key is very important, it claims me the owner of the coin while unlike the other that does not. 

[Cleaner 2549]

On 12/13/2020 at 7:47 PM, Ridam said:

Well there are plenty of Non-custodial Wallets out there. I have used coinbase Wallet but now I mostly preferred Trust and Atomic wallet for most Hodling.

Coinbase Wallet is also great wallet and as it's the product of Coinbase Inc we get brand assurance too while using it.

@Ridam..There are many non-custodial wallets in the crypto world that we have to choose from.  However, we can never keep cryptocurrencies in the custodial wallet for long.  So we can keep cryptocurrencies in non-custodial wallets for a long time.  However, the trust wallet is a very good wallet.  Here we can keep all kinds of coins.

[Ridam 7455]

11 hours ago, Cleaner said:

@Ridam.  However, we can never keep cryptocurrencies in the custodial wallet for long.

You just got it opposite 😅. I had suggested earlier to use custodial wallets for short term and temporary puropose. For long term , you must use non-custodial wallets. If you have big funds then , Hardware wallet would be the best recommendation.

[Cleaner 2549]

55 minutes ago, Ridam said:

You just got it opposite 😅. I had suggested earlier to use custodial wallets for short term and temporary puropose. For long term , you must use non-custodial wallets. If you have big funds then , Hardware wallet would be the best recommendation.

Right saying brother... @Ridam...We can use the custodial wallet for some time or to keep money.  However, I cannot use the custodial wallet to hold for a long time.  In that case we will use non-custodial wallet.  However, hardware wallet is the best wallet for keeping crypto coins