What is the difference between custodial and non-custodial crypto wallets?

economictimes.indiatimes.com:

US-based electronics retail company GameStop has launched a non-custodial crypto wallet, as a beta version, that will facilitate gamers to buy and sell their crypto-assets and NFTs without having to leave the game. A crypto wallet is where users can store all their virtual digital assets, including crypto tokens, coins and NFTs. Unlike MetaMask, GameStop is a non-custodial wallet, exclusively designed for gamers only. However, for crypto investors, especially newbies, it might be interesting to understand what are the key differences between custodial and non-custodial crypto wallets and which should one use.

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What's the difference? Maxime Paul, Co-Founder, Atato, a licensed MPC Crypto Custodian Wallet provider has penned down three key differences between the two, including custody of private keys, the possibility of wallet recovery and security. He said that the third-party service provider is responsible for the security and private keys of the custodial wallets, whereas users of non-custodial wallets have to own the responsibility for the same. One should know that if you lose the private keys (password) of your non-custodial wallet, you lose access to your wallet and crypto-assets forever. The recovery, in the case of key loss, is not possible beyond a certain point. «In a custodial wallet, the recovery is quite easy from a third-party service provider, whereas non-custodial wallet holders need to remember the complex passwords and a seed phrase, which is 12-24 words long for the recovery. Being unable to remember those, may lead to permanent loss.» Custodial