Custodial wallets hold crypto funds on behalf of their clients. They are equivalent to a bank account in the crypto world.
Wirex offers a borderless account that holds a range of fiat currencies and crypto and lets you seamlessly exchange between the two.
A debit card that gives you 0.5% cashback in Bitcoin for every purchase you make
Founded in 2012 in San Francisco, Coinbase is a custodial digital currency wallet with an integrated trading platform.
Simple to use and good reputation
Crypto.com offers a wallet and a suit of adjacent services letting you use your crypto to get a loan, lend it out and earn interest on it or spend it through one of their debit cards.
Earn interest on your crypto funds
Xapo is a Hong-Kong based bitcoin wallet known for its extremely safe and sophisticated cold storage custody technology.
Multiple top-up options
Luno is an Ethereum and Bitcoin wallet used by more than 3million people. It makes buying & sending crypto very easy.
Excellent customer support
As opposed to non-custodial wallets, custodial wallets hold crypto funds on behalf of their clients. This means that your funds are not tied to a blockchain address under your control.
Instead, the wallet provider holds all funds and is responsible for securing them. Because they store the funds for you, they are often compared to banks and like banks, are also regulated financial companies. Among other things, that means they have to verify the identity of their users, restrict their services in certain countries or even censor certain payments to comply with authorities. You will also notice a custodial wallet from the fact that you will not receive a private key when installing the app.
As custodial wallet providers take the responsibility of holding your funds for you, it’s important that you choose a trustworthy provider. Has the company ever been hacked? Are they backed by well-respected investors?
Similar to exchanges, most custodial wallets will let you buy and sell crypto from within the wallet. Good wallets are transparent about their fees and shouldn’t charge more than a 2% mark-up on the market rate.
Because custodial wallets hold your funds in custody and handle fiat payments they are subjected to regulation (unlike non-custodial wallets). This means they can only operate in whichever country they hold licenses. Search for a wallet that operates in your country.
Does your wallet offer a credit card so you can spend your crypto in stores? Can you earn interest on your crypto deposits? Make sure to choose a wallet offering the features that are most important to you.