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What's the difference between custodial and non-custodial wallets? Should you keep crypto on an exchange or in self-custody?
Custodial: Someone else holds the private keys on your behalf. Exchanges like Paribu, BTCTurk, and Binance TR use this model. You see a balance in your account but the assets are actually under the exchange's control.
Non-custodial (self-custody): You hold the private keys. Wallets like KriptoK use this model. You genuinely own your funds.
Think of a bank: when you open an account, the money feels like yours. But if the bank becomes insolvent, freezes accounts, or a financial crisis hits, you may not be able to access it. Crypto exchanges work the same way.
In self-custody, the vault is yours. As long as you hold the private key, no external force can reach your funds.
Self-custody's only risk is seed phrase management. If you lose your seed phrase, you lose your crypto permanently. The responsibility is entirely yours.
The smartest approach is using both: buy crypto with TRY on an exchange, then transfer to a self-custody wallet. You combine the convenience of buying with genuine ownership.