Overview
A non-custodial wallet is one where the user controls the private keys directly, with no third-party custody. The user is fully responsible for key security. MetaMask and hardware wallets are examples.
How It Works
The wallet generates and stores keys on the user's device, and the user manages backups and security. No third party can access or freeze the funds. This maximizes control but shifts responsibility to the user.
Why It Matters
Non-custodial wallets embody the self-custody ethos of crypto: no one can seize your assets. They eliminate counterparty risk but introduce self-management risk. They are the recommended standard for long-term holdings.
Related Concepts
Non-Custodial Wallets include Software and Hardware Wallets, relating to Private Keys and Self-Custody. They contrast with Custodial Wallets.