What Non-Custodial Means
2 mins
In the context of the LocalCryptos marketplace, the term non-custodial typically refers to the nature of the platform’s web wallet and the on-chain escrow service.
In reference to the web wallet, non-custodial means that LocalCryptos doesn’t ‘custody’ or store any cryptocurrency on the platform. Instead, the private key, and hence the cryptocurrency stored in the wallet, are entirely under users’ control.
In the context of the LocalCryptos on-chain escrow system, non-custodial means that the funds deposited in the escrow aren’t kept or stored by LocalCryptos, but rather they’re sent directly to a smart contract on the blockchain.
Being a non-custodial peer-to-peer crypto marketplace means that LocalCryptos users can trade cryptocurrencies directly with each other, safely and privately, and without relying on any third-party intermediaries to process the trades.
Trading on LocalCryptos is safe because of two primary reasons: one, because the platform doesn't custody user funds, which means that even if the platform's security somehow gets compromised, the users' funds will remain unaffected and safely stored in their private wallets, and two because of LocalCryptos’ robust anti-fraud and dispute resolution systems.
Author
Stefan is a full-time crypto writer and a part-time podcast addict. He holds a master's degree in Commercial Law with a graduate thesis in cryptocurrency regulation. He spends his free time lawyering around the block and lifting heavy objects off the ground. With his mind.
Faculty of Law ”Iustinianus Primus“ - Skopje, LL.M Business Law
Skopje, Macedonia
