Definition
A wallet or service where only the user holds and controls their private keys. The provider has no access to funds and cannot recover them if keys are lost.
Why It Matters
Non-custodial wallets give you true ownership of your crypto. If an exchange (custodial) gets hacked or goes bankrupt, you can lose everything. Non-custodial wallets eliminate this counterparty risk.
Example
MetaMask and Ledger are non-custodial wallets. Only you hold the seed phrase. The company has no access to your funds.
Related Terms
Self-Custody
Wallet
Seed Phrase
CEX