Custodial Wallet
A custodial wallet is one where someone else holds the keys — an exchange account, a fintech app, an ETF. You log in with a password; they control the bloc
A custodial wallet is one where someone else holds the keys — an exchange account, a fintech app, an ETF. You log in with a password; they control the blockchain. Convenient and recoverable, exactly like a bank account, with the same counterparty risks.
Why it matters
Custodial is how most people *start* (and how billions were lost at Mt. Gox, FTX, and others): the custodian can freeze, lend, lose, or be ordered to seize your funds. Use custodians as on-ramps, not vaults — buy there, withdraw to self-custody, and size what you leave behind by what you’d survive losing.
Related terms
self-custody ·
exchange · KYC