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Glossary

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 glossary

Cross-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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