Non custody wallet vs custody wallet

Non-Custodial Wallets:

In non-custodial wallets, users have complete control and ownership of their private keys. Users are responsible for securely storing and managing their private keys, ensuring the safety of their cryptocurrency holdings.

Custodial Wallets:

Custodial wallets involve third-party services that hold and manage the private keys on behalf of users. Users rely on the security measures implemented by the service provider.

Use cases:

Cryptocurrency exchanges (when funds are held in exchange wallets), some online wallets, and custodial services provided by financial institutions.