What is a Custodial Wallet?
The short answer
A wallet where a company (like an exchange) holds your keys for you.
When you leave crypto on an exchange without withdrawing it, the exchange holds your private keys on your behalf — similar to how a bank holds your cash. Convenient, but you’re trusting the company’s security and solvency.
Related terms
Full glossaryCross-Chain Bridge
A tool that lets crypto or data move between two different, otherwise incompatible blockchain networks.
Proof of Work
A consensus method (used by Bitcoin) where network security comes from competing computing power.
Smart Contract
Self-executing code on a blockchain that automatically carries out an agreement without a company in the middle.
Gwei
A tiny unit of ETH used to price gas fees — one gwei is one billionth of one…
Non-Custodial Wallet
A wallet where only you hold the keys — full control, and full responsibility.
Hardware Wallet
A small physical device that stores private keys completely offline.
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