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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)

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