Non-custodial

A non-custodial arrangement is one in which the user alone holds the private keys that control their crypto assets, without a third party managing them. Non-custodial wallets give users direct control and remove reliance on an intermediary’s solvency, but they also place full responsibility for security and backups on the user. If keys or recovery phrases are lost, funds usually cannot be recovered by anyone.

A common misconception is that non-custodial automatically means more private or anonymous; transactions remain recorded on public blockchains, and the main distinction from custodial services is who controls the keys, not the level of privacy.