Custodial vs non-custodial wallets
The difference between a custodial wallet like Coinwaka and a non-custodial wallet where you hold the keys.
Beginner 3 min readUpdated 6/18/2026
Crypto wallets come in two types, and the difference is about who holds the keys.
Custodial wallet
A platform holds the keys for you, like your Coinwaka wallet. You sign in with your account, and security comes from your password, PIN, and 2FA. It is simpler, and you can recover access if you lose your phone.
Non-custodial wallet
You hold the keys yourself, usually as a seed phrase. You have full control, but if you lose the seed phrase, no one can recover your funds.
Which is right for you?
- A custodial Coinwaka wallet is simpler for buying, selling, P2P, and everyday use.
- A non-custodial wallet gives self-custody but puts full responsibility on you.
Many people use both: Coinwaka for buying and trading, and a personal wallet for long-term self-custody.