What is a Non-Custodial Exchange?
Opposed to a custodial exchange that requires control of your funds, a non-custodial exchange allows you to trade without handing over your funds to a third-party and the ability to maintain control over your private keys. If you are the only person with access to your private keys, only you can choose what happens with your funds, and this is one of the reasons non-custodial exchanges can be extremely secure to use.
If you’re looking to use payment methods outside of a standard bank or wire transfer, a non-custodial bitcoin exchange that supports P2P trading can be a fantastic choice. P2P trading is a great way to exchange bitcoin and other popular cryptocurrencies such as ethereum and BNB using otherwise unavailable payment methods, even cash.
What are the Benefits of Using a Non-Custodial exchange?
- Retain control of your funds and private key or account mnemonic to generate them
- Little to no third party risk as your funds aren’t exposed to managed hot wallets
- Non-custodial exchanges tend to be more private overall
- No sign up or account required. Keep your private information more secure.
- Speed
If you have been trading cryptocurrency for any length of time, you already know how volatile and fast the crypto markets can be when compared to traditional markets. In a market like this, it is crucially important to be able to adapt and act as a trader with a moment’s notice. With an intuitive non-custodial trading platform that is easy to use, you’ll be able to conduct transactions quickly, easily, and without delay to empower you as a trader and speed up your operations.
Are Decentralized Exchanges Non-Custodial?
While almost all decentralized exchanges can be considered non-custodial, not all non-custodial exchanges can be regarded as decentralized. Furthermore, while decentralized is a great word, its meaning has been softened a little in recent years as the term has often been used quite broadly. In short, the thing to remember is that non-custodial doesn’t mean decentralized, these are different terms, and while they usually fit together well, that isn’t always the case.
What You Should Know About Non-Custodial Exchange
One of the most important things to remember when using a custodial exchange is that you are giving over control of those funds to someone else every time you make a deposit. Unfortunately, a common mistake people make is treating custodial platforms as banks for their entire cryptocurrency portfolio. Over the years, several custodial platforms have suddenly been shut down or become insolvent due to hacks, poor management, or even legal action that can result in you losing control of your crypto before you’ve even realized what’s happened.
If you want to embrace the true strengths of cryptocurrency, consider using non-custodial exchanges like BitSwapNow whenever possible, taking your privacy seriously, and always making sure your private keys are only for you to see!
