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What is Non-Custodial?

Crypto Terms Glossary: What is Non-Custodial?

Non-custodial and custodial are classifications that are used to classify the services that a financial institution provides to their customers to manage securities or other assets, including crypto. In the blockchain industry, non-custodial means that the user has full control over their crypto and is required to manage their own private keys (specialized algorithmic passwords needed to generate transactions and manage assets). This typically means that no external entity is responsible for the management, insurance, and transaction of the assets held.

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