Crypto Dictionary
Non-Custodial
Definition
A type of wallet or exchange where the user retains full control of their private keys.
Deep Dive
Non-custodial refers to a type of wallet, exchange, or service where the user retains exclusive control over their private keys and, consequently, their digital assets. In a non-custodial environment, there is no third party that holds or has access to a user's funds; the user is solely responsible for managing their seed phrase or private keys, which are the cryptographic proof of ownership. This design embodies the core principle of self-sovereignty in the cryptocurrency space, often encapsulated by the adage, "not your keys, not your coins."
Examples & Use Cases
- 1MetaMask
- 2Ledger (hardware wallet)
- 3Uniswap (DEX)
Related Terms
Private KeySelf-CustodyDecentralized Exchange (DEX)