Non-custodial wallet
Also known as: self-custody, self-custodial, custodial wallet
A wallet where you alone hold the private keys, in contrast to a custodial wallet where a third party such as an exchange controls them.
Definition
In a non-custodial (self-custody) wallet you hold the private keys, so only you can move the assets — "not your keys, not your coins". A custodial wallet, by contrast, is run by a provider that holds the keys on your behalf, as exchanges do. The distinction matters for security and for record-keeping: custodial providers may supply statements and fall under reporting frameworks, while self-custody puts the record-keeping burden on you.
Example
You move BTC from an exchange (custodial) to a hardware wallet (non-custodial); only you can now sign transactions, and you must keep the records.
Jurisdiction notes
- South Africa: Self-custody shifts record-keeping to you; SARS still expects accurate base cost regardless of where crypto is held.