Overview#

Custodial Wallet is a Cryptocurrency wallet in which your Private Keys are stored by a Third-party (a Custodian)

However, they have some advantages:

• You can manage your Cryptocurrency very quickly and at any time when there is an Internet connection;
• No chance, well very little, for you lose your Private Key and lose access to your Cryptocurrency;

Disadvantages:

The custodian has control over your money;

• Your Cryptocurrency wallet can be seized by a court decision;
• If your Cryptocurrency wallet gets hacked, your coins may go missing;
• In the case of ​a​ fork, there is a chance ​to not receive​ your Cryptocurrency or not right away.

The Custodial Wallet is very similar in its ​function​ to the principles of ​a​ bank​, meaning​ you do not fully control your money ​inside of​ it. Yes, the money remains yours, but it is in the hands of Custodian.

More Information#

There might be more information for this subject on one of the following:

• Cryptocurrency wallet

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• [#1] - Custodial vs Non-Custodial wallet​s Benefits of light wallets - based on information obtained 2018-10-09-