Custodial arrangements put digital assets under the control of a third-party (exchange, platform), who retains custody of the private keys. Non-custodial ownership means the individual controls the keys and is solely responsible for their security.
Key Takeaways
- Custodial solutions offer convenience but introduce third-party risk.
- Non-custodial models empower users but require greater self-reliance.
Trade-Offs and Security Differences
Non-custodial offers more direct ownership, but if private keys are lost, access cannot be restored. Custodial arrangements carry risks of withdrawal limits, hacks, or business failure.
How to Verify
Wallet and platform design documentation and on-chain data clarify whether ownership is direct or mediated.
About Tsuka
Tsuka educates users about digital sovereignty through evidence-based comparisons - equipping people to make informed choices about asset security in a rapidly changing technology landscape.
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