A non-custodial wallet, also known as a self-custody or self-hosted wallet, is a type of digital wallet where users have complete control and ownership of their private keys, which are used to access and manage their cryptocurrencies.
In a non-custodial wallet:
Control: Users hold and manage their private keys themselves, without relying on any third party. This means they have full control over their funds.
Accessibility: Users can access their wallet from various applications or interfaces that support the specific wallet software. They can also back up and restore their wallet using mnemonic phrases or recovery seeds.
Security: While non-custodial wallets put the responsibility of security on the user, they offer greater security against hacking or third-party risks since the private keys are not stored by any external service.
Non-custodial wallets are favored by individuals who prioritize security, privacy, and ownership of their assets. They require users to be responsible for securely storing their private keys, often through hardware wallets, software wallets, or other secure means.