7 Best Custodial Crypto Wallets (Reviews & Comparison)

As the popularity of cryptocurrencies continues to soar, it’s becoming increasingly important for crypto enthusiasts to have a reliable custodial wallet to store their digital assets. Custodial wallets provide an added layer of security as they are managed by a third-party service provider who is responsible for safeguarding the funds.

However, with so many custodial crypto wallets available in the market, it can be overwhelming to choose the right one that suits your needs. To help you navigate through this process, we’ve compiled a list of the best custodial crypto wallets that you can trust with your digital assets.

In this blog post, we’ll review the top custodial wallets based on factors like security, ease of use, fees, and customer support.

So, without further ado, let’s dive into the world of custodial crypto wallets and discover which one is the best fit for you.

What is a Custodial Wallet

A custodial wallet is a type of digital wallet where a third-party service holds your cryptocurrency assets on your behalf. You don’t have direct control over your private keys, which are used to access and manage your funds.

Instead, the custodial wallet provider handles all security and maintenance for you. This can be convenient, but it also means you’re trusting your funds to a centralized entity, which can be a security risk.

Custodial crypto wallets are often used by beginners or those who don’t want to manage their own security.

Pros and Cons

Also Read: Best Fiat-to-Crypto Exchanges for Beginners

Comparison between Top-Rated Custodial Crypto Wallets

Here’s a comparison table for the custodial digital wallets of Bybit, Kucoin, Binance, Gate.io, OKEx, Stormgain, and Coinbase Pro:

1. Bybit: All-in-One Custodial Crypto Wallet

• Supported Cryptocurrencies: 325+
• Fiat currencies: USD, EUR, GBP, and 3+ more
• Payment methods: Debit cards, Credit cards, P2P
• Custodial wallet Fees: 0.01%- 0.06%

SignUp on Bybit and Get a 30% Fee Discount

Bybit is a popular cryptocurrency exchange and wallet. It offers users the ability to trade a range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

The exchange has a user-friendly interface that is easy to navigate, making it a great option for beginners.

Bybit also offers a mobile app, which allows users to trade and manage their cryptocurrencies on the go.

In addition to trading, Bybit also offers a custodial wallet. Users can access their wallets and trade on the Bybit platform with confidence, knowing that their assets are protected.

Key Features

1. Offers advanced trading tools
2. High Security of funds
3. High Liquidity and Volume
4. Leverage Trading upto 100x
5. User-Friendly Interface
6. 24/7 Customer Support

2. Kucoin: Best crypto Wallet for Beginners

• Supported Cryptocurrencies: 806
• Fiat currencies: USD, AED, ARS, and 40+ more
• Payment methods: Debit cards, Credit cards, P2P, Wire transfer, google pay

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Kucoin is a cryptocurrency exchange and wallet. Users can buy, sell, and trade various cryptocurrencies on the platform. Kucoin offers advanced trading tools and features to help users make informed decisions.

The exchange also provides 24/7 customer support to address any issues or concerns. Kucoin’s custodial wallet allows users to store their cryptocurrencies securely.

The wallet supports multiple cryptocurrencies and provides a private key for added security. Users can also earn passive income through staking and lending on Kucoin.

Key Features

• Multiple cryptocurrencies are available for trading.
• User-friendly interface.
• Low trading fees.
• High security with multi-factor authentication and cold storage.
• Fast transaction processing.
• Mobile app for trading on the go.

3. Binance: Best Ethereum Custodial Crypto wallet

• Supported Cryptocurrencies: 380+
• Fiat currencies: EUR, GBP, BRL, and 30+ more
• Payment methods: Debit cards, Apple Pay, P2P
• Custodial wallet Fees: 0.025%- 0.1%

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Binance offers a user-friendly interface and competitive fees for trading. The platform also supports margin trading and futures trading.

Binance has its own native cryptocurrency called Binance Coin (BNB), which can be used to pay for trading fees and other services on the platform.

Binance also provides a secure Custodial wallet for users to store their cryptocurrencies. The Binance wallet supports multiple cryptocurrencies and provides various security features to protect users’ assets.

Users can easily transfer their cryptocurrencies from the exchange to the wallet for safekeeping.

Key Features

1. Large selection of cryptocurrencies available.
2. Low trading fees start at 0.1%.
3. High liquidity for easy buying and selling.
4. User-friendly interface for beginners.
5. Advanced trading features, such as margin and futures trading.
6. Binance Coin (BNB) can be used to pay fees and get discounts.
7. High-security measures, including two-factor authentication.

Read: Binance vs Coinbase: Which Should You Choose

4. Gate.io: Best Wallet for Low Cap Coins

• Supported Cryptocurrencies: 1628
• Fiat currencies: KRW, EUR
• Payment methods: P2P, third party apps
• Custodial wallet Fees: 0.035%- 0.2%

Learn More

Gate.io supports over 400 cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Users can access the platform via their web browser or mobile app.

The platform is known for its security features, such as two-factor authentication and SSL encryption.

Gate.io charges a trading fee of 0.2%, which is relatively low compared to other cryptocurrency exchanges. It also offers a built-in Custodial wallet for storing cryptocurrencies securely.

The platform allows users to buy, sell, and trade various cryptocurrencies.

Key Features

1. Cryptocurrency exchange with over 1500 trading pairs.
2. Margin, spot, futures, and perpetual contract trading options.
3. Staking and low fees.
4. High emphasis on security with 2FA and email notifications.
5. User-friendly interface and mobile app for iOS and Android.

5. OKEx: Best Bitcoin Custodial Wallet

• Supported Cryptocurrencies: 362
• Fiat currencies: AED, ARS, AUD, and 42+ more
• Payment methods: Debit cards, Credit cards, P2P

OKEx is a cryptocurrency exchange that was founded in 2017. It offers trading in various cryptocurrencies, including Bitcoin and Ethereum. OKEx has a user-friendly interface and a mobile app for easy access. The platform also provides advanced trading features, such as margin trading and futures trading.

OKEx offers a secure wallet for storing cryptocurrencies, which supports multiple cryptocurrencies. The wallet uses advanced security measures, such as two-factor authentication and cold storage, to ensure the safety of user funds.

It also provides a range of educational resources to help users learn about cryptocurrencies and trading strategies.

Key Features

• OKEx Custodial Wallet is a secure digital wallet for managing and trading cryptocurrencies.
• Features multi-signature technology, advanced encryption, and 2-factor authentication for security.
• Supports a wide range of cryptocurrencies and has a user-friendly interface.
• Offers 24/7 customer support and low transaction fees.
• Fully integrated with the OKEx exchange for seamless trading.
• Compliant with global regulations and strict security and privacy standards.

6. Stormgain: Best Custodial for BTC Miners

• Supported Cryptocurrencies: 9
• Fiat currencies: USD
• Payment methods: Credit Cards
• commission: 0.25

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Stormgain’s wallet allows users to store their cryptocurrencies securely. The wallet offers two-factor authentication and encryption to ensure the safety of users’ funds.

Additionally, Stormgain offers a mobile app that allows users to trade and monitor their portfolios on the go. The app is available for both iOS and Android devices.

Stormgain also offers a demo account feature that allows users to practice trading without risking real funds.

Key Features

1. Free Bitcoin Cloud Miner
2. Custodial wallet supports 100+ top digital assets
3. Low transaction fees
4. High security and User Friendly
5. Supports Ethereum blockchains transactions

7. Coinbase Pro: Best Custodial Wallet for US Users

• Supported Cryptocurrencies: 242
• Fiat currencies: USD, EUR, GBP
• Payment methods: Apple and Google Pay, Credit Cards
• Custodial wallet Fees: 0.1%- 0.6%

Learn More

Coinbase Pro is a cryptocurrency exchange. It allows users to buy, sell, and trade various cryptocurrencies.

Coinbase Pro also provides a digital wallet for storing cryptocurrencies. The wallet is secured with two-factor authentication and insurance. Users can transfer their cryptocurrencies to the wallet for safekeeping.

The wallet supports several cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Users can also set up recurring purchases of cryptocurrencies through Coinbase Pro.

Key Features

1. Advanced trading tools, margin trading, and API integration.
2. 98% of customer funds are stored offline for maximum security.
3. Deep liquidity and access to multiple trading pairs.
4. Low fees for deposits and trading.
5. Mobile app for trading on the go.
6. Designed for institutional traders with FIX API, WebSocket feed, and multiple account types.
7. Licensed and regulated in multiple jurisdictions for compliance.
8. Offers educational resources and tools for users.

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How to Choose a Custodial Crypto Wallet

🔒 Security: The most important factor to consider when choosing a custodial crypto wallet is the level of security offered. The wallet should have top-notch security measures such as two-factor authentication, encryption, and multi-signature verification to prevent unauthorized access.

💰 Supported Cryptocurrencies: It’s important to make sure that the wallet supports the cryptocurrencies you plan to store. Not all wallets support all coins, so check before committing.

📱 User Interface: The user interface of the wallet should be user-friendly and easy to navigate. This will help you manage your assets and execute transactions efficiently.

📈 Transaction Fees: Look out for the transaction fees charged by the wallet. Some wallets charge high fees, while others charge reasonable rates. You should consider this when choosing a wallet, especially if you plan to make frequent transactions.

🌍 Reputation: Before committing to a custodial wallet, it’s important to research the reputation of the wallet provider. Look for reviews, and feedback and ensure the provider has a history of secure operation.

📝 Terms of Service: It’s important to read the terms of service of the wallet provider carefully. This will help you understand how the provider handles your funds, what they are responsible for, and what you are responsible for.

🔑 Private Keys: With custodial wallets, you don’t control the private keys, which means you rely on the wallet provider to secure your funds. Make sure you’re comfortable with the security protocols they have in place for your private keys.

💬 Customer Support: The wallet provider should have a responsive customer support team in case you need assistance. Look for wallets that offer various channels for support, such as email, phone, and chat support.

💸 Insurance: Lastly, some custodial wallets offer insurance for the funds stored in the wallet. This is an added layer of protection in case of theft or hacking, so it’s worth considering.

Must Read: Why Hardware wallets are more secure than software wallets

Custodial vs Non-Custodial Wallets

Must Read: Custodial vs Non-custodial Wallet

• Control of private keys: Custodial wallets don’t give users control of their private keys, while non-custodial wallets do.
• Security: Both types of wallets are generally secure.
• Accessibility: Custodial wallets are more accessible, while non-custodial wallets require more technical knowledge to use.
• Anonymity: Non-custodial wallets provide more anonymity than custodial wallets.
• Transaction fees: Custodial wallet fees depend on the provider, while non-custodial wallet fees depend on the network.
• Third-party risk: Custodial wallets have a higher third-party risk than non-custodial wallets.
• User Responsibility: Non-custodial wallets require users to take more responsibility, while custodial wallets don’t.
• Backup & Recovery: Non-custodial wallets allow for backup and recovery, while custodial wallets don’t.
• Transparency: Non-custodial wallets offer more transparency than custodial wallets.
• Regulatory Compliance: Custodial wallets are more likely to be compliant with regulations, while non-custodial wallets may not be.

Who Should Use Custodial Crypto Wallets?

Custodial crypto wallets are ideal for those who value ease of use over complete control of their funds. These wallets are managed by a third-party service provider, who is responsible for the security and management of the funds.

Investors who require insurance protection may also prefer to use custodial wallets. Some providers offer insurance coverage for funds held in their wallets, which provides added protection against theft or loss of funds.

Large businesses or institutions that manage large amounts of cryptocurrency may also prefer to use custodial wallets. These wallets require complex security and management measures, which are best handled by a professional service provider.

However, it’s essential to choose a reputable service provider to minimize the risk of theft or loss of funds. Users should also consider the trade-off between convenience and control. Custodial wallets require giving up some degree of control over the funds held in the wallet.

How do Crypto Wallets Work?

Crypto wallets are digital tools used to store, manage, and transfer cryptocurrencies. Each wallet has two keys, a public key, and a private key.

The public key is an address used to receive cryptocurrency, while the private key is used to access and manage the wallet.

The private key is like a password that allows the owner to send or spend their cryptocurrency. When someone sends cryptocurrency to a wallet, the transaction is verified and added to the blockchain, a digital ledger that records all transactions.

The wallet owner can use their private key to access their cryptocurrency and send it to other wallets.

There are different types of crypto wallets, including software wallets, hardware wallets, and paper wallets, each with its own advantages and disadvantages.

Types of Crypto Wallets

There are several types of cryptocurrency wallets, each with its own unique features and benefits. Here are some of the most common types:

1. Software/Hot wallets

These are digital wallets that can be installed on a computer, mobile phone, or tablet. They are convenient to use and allow easy access to cryptocurrencies. Some popular software wallets include Exodus, Electrum, and Mycelium.

2. Hardware/Cold wallets

These are physical devices that are designed to store cryptocurrencies offline, making them less vulnerable to hacks and cyber attacks. They are considered one of the safest ways to store cryptocurrencies. Examples of hardware wallets include Ledger Nano S, Trezor, Safepal, and KeepKey.

Read: Best Bitcoin Hardware wallets for 2023

3. Paper wallets

These are a type of cold storage wallet, which means that they are not connected to the internet. Paper wallets are essentially a piece of paper with a printed public and private key, which can be used to send and receive cryptocurrencies.

However, paper wallets can be easily lost or damaged, so it’s important to store them securely.

Final Thoughts

In conclusion, custodial wallets offer convenience and ease of use, but they also come with risks. When choosing a custodial wallet, it’s important to prioritize security and reliability.

Based on our research, the best custodial wallets are Bybit, Kucoin, and Binance. These platforms have a strong reputation for security, offer insurance coverage, and have a track record of being reliable.

However, it’s important to remember that custodial wallets are not the only option for storing cryptocurrency. If you’re looking for more control over your assets and want to prioritize security, a non-custodial wallet may be a better choice.

Ultimately, the decision of which wallet to use will depend on your personal preferences and needs.

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