Hey Amy, I've been reading about crypto wallets. What's the difference between custodial and non-custodial wallets?

Hi Sam! Great question. Think of custodial wallets like a bank holding your money, while non-custodial wallets are like keeping cash in your own safe at home.

Oh, I see. So with a custodial wallet, someone else keeps my crypto safe for me?

Exactly! A company or exchange holds your private keys - which are like special passwords for your crypto. With non-custodial wallets, you keep those keys yourself.

That sounds risky. What if I lose my private keys?

You're right, it can be risky. If you lose your keys with a non-custodial wallet, you might lose your crypto forever. But with custodial wallets, the company can help you if you forget your password.

I guess both have good and bad points. Are custodial wallets safer from hackers?

Not always. Custodial wallets can be targets for big hacks. Non-custodial wallets, especially offline ones, can be safer from online attacks.

Interesting! Is it easier to use one type over the other?

Usually, custodial wallets are easier for beginners. They often have simpler interfaces and customer support. Non-custodial wallets need more technical know-how.

So which one should I choose if I'm just starting with crypto?

It depends on what you value more - ease of use or complete control of your crypto. Custodial might be better for beginners, but always do your research and choose a reputable service.

That makes sense. Thanks for explaining, Amy! I feel like I understand crypto wallets better now.

You're welcome, Sam! Remember, the crypto world is always changing, so keep learning and stay safe with your digital money!