What is the difference between custodial and self-custody wallets

The main difference between custodial and self-custody wallets lies in the management of private keys:

In self-custody wallets, also known as non-custodial wallets, the user retains control over their private keys. Users can send and receive cryptocurrencies with these wallets. By managing their own private keys, the user secures full control over their assets. However, the user is also responsible for keeping the private key. If he loses it, the funds are lost.

On the other hand, custodial wallets are managed by a third party, such as a centralized cryptocurrency exchange. In this case, control over the user’s private keys lies with this third party, meaning they have access to the user’s cryptocurrencies.

Zippy is a self-custody wallet. You are the only person who has control over the wallet. We help you to secure yourself. Set one or more Zippy users from your contacts as guards who will store your encrypted private key. If you need to recover your wallet, you can meet with one of your guards physically or in a video call and scan a QR code from their phone. Your guard will not have access to your Zippy account and can only help you with the recovery process.