What is Custodial Wallets

Custodial cryptocurrency wallets are protected by private keys that users do not own. Financial institutions and businesses, such as cryptocurrency exchanges, provide security funds that regulate and ensure the security of users' private keys. Protection funds are attractive because of their ease of use. Because they provide accounts that have the means to recover passwords, security wallets reduce the chances of users becoming negligent and losing access to cryptocurrencies. However, using a wallet is safe. They are not immune to cyber-attacks and fines can be incurred. Therefore, users should choose a reliable wallet provider with robust security measures.

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