Custodial wallet

A wallet where a third party holds your private keys.

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What is a custodial wallet?

A custodial wallet is one where a service provider holds and manages your private keys on your behalf. Most exchange accounts work this way by default.

Trade-offs

This is convenient, since the provider handles security and can often help if you lose your password. The trade-off is that you rely on them to safeguard your assets, so choosing a reputable provider matters.

Related terms

The safekeeping of crypto assets, either by yourself or by a third party.

A business that offers crypto services such as trading or custody.

A platform where people can buy, sell and trade cryptocurrencies.

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Your Luno app makes investing straightforward, with a clear and intuitive app experience we know you’ll love.