'Custodial vs. Non-custodial Crypto Trading' cryptocurrency defi
Until the crypto era, we didn't have many options of kicking out 3rd parties from dealing with our money. If we want to be the ultimate boss of our funds, we can turn them into crypto and trade and invest them via decentralized tools with no intermediary involved. In this article, we will compare custodial and non-custodial ways of doing things in crypto, primarily focusing on trading. We will also walk through examples of when each might be best for your needs.
The involvement of multiple parties in the process can be explained by the intention of regulators to negate the risks of retail users who may not have sufficient knowledge or expertise to handle things properly in trading.mechanics, where each professional participant supervises the actions of the other so that none of them has an opportunity to misuse their professional competence against a user’s interests.
a user deposits money with a CEX’s account, buys/sells assets on their own using CEX’s order book, then withdraws the funds when they want.