Definition of Custody

In the context of cryptocurrency, a "custodial" asset means an asset is placed under the care of a third party. This is similar to how banks have custody over their customer's funds. A Custodial Wallet refers to a wallet whose private key management falls under the care of a company. Examples of Custodial wallets include Coinbase, Nexo and other wallets where users do not have access to their private keys.

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Related Terms

Double Spending

Double spending refers to the act of spending digital currencies twice. This is most commonly applied on crypto exchanges by unscrupulous actors.

Bear Market

Contrary to bull market, it indicates the direction of the market going for downward trend.

Whitepaper

An introductory paper to consicely explain an issue and a possible solution on the issue.

Token Burn

An event in which tokens are verifiably removed permanently removed from circulation.

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