What's the difference between a custodial and a non-custodial wallet?
In short
- A custodial wallet is one where a third party, such as an exchange, holds your private keys for you, and you access funds through an account login.
- A non-custodial wallet puts you in full control of your own private keys and seed phrase, so no company can access or freeze your funds.
- Both types work for paying on trip1, as long as your wallet can send a supported coin on a supported network.
What is a custodial wallet?
A custodial wallet is managed by a third party that holds your private keys, most commonly a crypto exchange like Binance or Kraken. You log in with a username and password rather than a seed phrase, and the provider handles the security of the keys behind the scenes.
The upside is convenience and easy account recovery. The trade-off is that you are trusting the provider to safeguard your funds and keep your access open.
What is a non-custodial wallet?
A non-custodial wallet gives you sole control of your private keys, usually through a seed phrase you store yourself. No company can move, freeze, or block your funds, which is often summed up as not your keys, not your coins.
The upside is full ownership and independence. The trade-off is full responsibility: if you lose your seed phrase, there is no support team to restore access.
Which one can you use on trip1?
Both. trip1 accepts payment from custodial exchange accounts and non-custodial wallets alike. trip1 is a hotel booking platform where you pay with Bitcoin, Ethereum, USDC, and 50+ other cryptocurrencies through CoinGate, a MiCA-licensed payment provider, by sending the exact amount to the checkout address. What matters is that your wallet supports the coin and network shown at checkout.
Related articles
Custodial vs non-custodial wallets - FAQ
A custodial wallet is one where a third party, like an exchange, holds your private keys. You access funds through your account login rather than a seed phrase.
A non-custodial wallet puts you in full control of your private keys and seed phrase. No company can access or freeze your funds.
Both work. You can pay from a custodial exchange account or a non-custodial wallet, as long as it sends on a supported network.
Non-custodial wallets remove third-party risk because only you hold the keys, but you're fully responsible for backing up your seed phrase.
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