Custodial
| Custodial systems are ones in which the service provider has the private keys required to access the clients’ funds and provides them with a simple login account. This type of system can be convenient for those who do not want to deal with the hassle of managing their own private keys. However, it also comes with some risks. For example, if the service provider were to become insolvent, the clients would not be able to access their funds. Additionally, the service provider may be hacked, which would also result in the loss of funds. |
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