In the crypto universe, the term "custodial" refers to the responsibility for maintaining the private keys of a cryptocurrency wallet. Private keys are needed to access and spend cryptocurrencies, so it's important to store them in a safe place.
There are two main types of escrow services:
Hot Escrow: Private keys are stored on an online server, which is connected to the internet. This type of service is more convenient, but it is also more vulnerable to cyber attacks.
Cold Escrow: Private keys are stored on an offline device, which is not connected to the internet. This type of service is more secure, but it is also less convenient.
It is important to choose an escrow service that is suitable for your risk level and needs. If you are not sure which service to choose, it is best to consult an expert.
Here are some tips for choosing an escrow service:
Look for a service with a good reputation. You can read reviews online or ask friends and family for recommendations.
Make sure the service is secure. The service must use state-of-the-art security measures such as encryption and two-factor authentication.
Understand Service Costs. Some services charge escrow fees, while others do not.
Be clear about your security requirements. If you have a high level of risk, you'll need a more secure escrow service.
Cryptocurrency custody is an important responsibility. When choosing an escrow service, it's important to do your research and choose a service that is right for your risk level and needs.