Common example
Crypto kept on a centralized exchange account is usually custodial because the platform controls the wallet infrastructure.
Tradeoff
Custodial wallets are convenient, but users depend on the platform's security, access rules and withdrawal policies.
Common mistake
Do not treat Custodial wallet as a universal rule. Exchanges, wallets and card apps may use the same term differently, especially around limits, fees, networks and account restrictions.
User action
Before relying on this term, check the provider's official help page, fee schedule or product terms. If funds are involved, test with a small amount first and keep a record of the transaction or setting.
Related pages
Compare non-custodial wallets and exchanges.
How to use this term
Use Custodial wallet as a practical checkpoint when comparing exchanges, wallets, cards or on-chain tools.
What to check
Check how the term appears in fees, limits, account rules, wallet flows and risk notes before making a platform decision.