The trend of purchasing cryptocurrency is growing! And when you buy cryptocurrency, it's essential to select a Custodial and Non-custodial wallet to store your money. But, if you don't understand the difference between Custodial and Non Custodial wallets, you can’t benefit fully from cryptocurrency technology. Therefore, let's take a more in-depth review of Custodial and Non-Custodial cryptocurrency wallets comparison. But before we move to the next section, let's understand the difference between Custodial and Non Custodial wallets.

Custodial Wallet: What's It?
Custodial wallets manage your money and store your personal information. In another way, you're trusting an outside party to protect your money. The most appealing aspect of it is the fact that (technically) you will not lose your wallet's access. So, you won't lose the private keys even if you don't have them.

Non-Custodial Wallet: What's It?
A Non-custodial wallet is a bitcoin account that only the user with private keys can access. And that's you! Only you can access the funds in your wallet.
Since only the user of the wallet has access to the private keys, a safe backup of your wallet is crucial. When setting up a Custodial wallet, you'll be given a mnemonic word that ranges from 12 to 24 words which you must note down and place securely. If you are unable to access your wallet any longer, you can use your recovery words to get access. And this is the major difference between Custodial and Non Custodial wallets. Also, remember that anyone could access your cryptocurrency wallet in case they have access to your key phrase. So, don't disclose it to anyone and don't keep it online.

Custodial Wallets: What's the Benefits"?
1. Affordable Transactions
Custodial wallets, unlike other wallets, don't require the transaction fee to be paid. Customers can conduct payments for free through the system.

2. Lost Private Keys? No Problem
As a third party controls the Custodial wallet, even if an individual lost his private keys, it's not a problem. This is because getting access to the wallet is very simple.

3. Backup Provision
Another benefit of a Custodial wallet/account is that it is handled by a central authority with proper backup services. This means that a user can make any change or restore an earlier version with ease.

Non-Custodial Wallets: What’re the Benefits?
1. Users' Get Complete Control Over Funds
The reason why Non-custodial wallets are seeing high growth is that they offer users the ability to access their funds. Users don't have to search for a third party to manage their money or do any of the related tasks.

2. Secured Funding
Because all the data of your Crypto wallet and the funds depends on you, data breaching is tough. This is among the primary reasons that today almost 66.5% of cryptocurrency owners use Non-custodial wallets.

3. Instant Withdrawals
In contrast to Custodial wallets, Noncustodial wallets don't require third-party approval before any transaction. This makes the process simpler and makes instant withdrawals more convenient.

Custodial Versus Non-Custodial Crypto Wallets: Which One to Go For?
The choice between a Custodial or Non-custodial account is based on the way you intend to protect your crypto. If you're just starting out trading cryptocurrency and want to protect your assets, choose a Custodial wallet. However, if you feel like you need greater control over your cryptocurrency, a Non-custodial account is the better option.

Some Last Words
So, the difference between Custodial and non Custodial wallets is crystal clear. Now you know that the choice between Custodial and Non-Custodial wallets is absolutely important for protecting your crypto accounts. Certain people prefer a Custodial wallet and some prefer accounts with no Custodial features while others prefer both. Remember, it’s crucial to decide if you want cold or hot wallets to share your cryptocurrency assets across crypto wallets. Nonetheless, you can utilize both wallets to get the most effective outcomes.

Author Bio
Erma Winter is a Technical Writer at MobileCoderz. It is a Top Android app development company in the USA. We are focused on helping startups, small, and medium businesses create competitive and winning software. I enjoy bringing a digital world closer to people and writing about technology, mobile apps, innovations, and progressive management models. You can also contact here, if you are looking forward to Hire Android App Developers.

I was in the same shoes too, torn in between custodial and non custodial wallets and their relevance, till I did a bit of research and stumbled on this article - https://blog.bitmama.io/what-are-custodial-and-non-custodial-wallets/

I hope it helps. Cheers!