CUSTODIAL AND NON CUSTODIAL WALLET -BITCOIN LIGHTNING P3
You cannot tell the difference between custodial and non-custodial wallet addresses just by looking at them. Both types of addresses are alphanumeric strings of the same length.
However, there are a few ways to tell the difference between custodial and non-custodial wallets:
Who controls the private keys? In a custodial wallet, the private keys are controlled by a third party, such as a cryptocurrency exchange or wallet provider. In a non-custodial wallet, the private keys are controlled by the user.
How do you create an account? To create an account with a custodial wallet provider, you will typically need to provide your name, email address, and a password. You may also be asked to verify your identity. To create an account with a non-custodial wallet provider, you will typically only need to create a password.
What features does the wallet offer? Custodial wallets often offer features such as fiat currency on-ramps and off-ramps, trading, and staking. Non-custodial wallets typically focus on storing and transacting cryptocurrency.
If you are unsure whether a wallet is custodial or non-custodial, you can always contact the wallet provider to ask.
Here are some examples of custodial and non-custodial wallets:
Custodial wallets:
Coinbase
Binance
Gemini
BlockFi
Celsius Network
Non-custodial wallets:
Bitcoin Core
Electrum
Wasabi Wallet
Samourai Wallet
BlueWallet
It is important to note that some wallets offer both custodial and non-custodial features. For example, some cryptocurrency exchanges offer users the option to store their cryptocurrency in a custodial wallet or in a non-custodial wallet.
When choosing a wallet, it is important to consider your own needs and preferences. If you are looking for a convenient wallet that offers a wide range of features, a custodial wallet may be a good option for you. If you are looking for a wallet that gives you full control over your cryptocurrency, a non-custodial wallet may be a better option.#BinanceSquare
