Custodial refers to the safekeeping of digital assets by a third party. In this setup, users entrust their cryptocurrencies to a provider who holds the private keys necessary to access and manage the assets. Common examples include exchanges and wallet services that offer custodial solutions.One key aspect of custodial services is convenience. They often provide user-friendly interfaces and additional features like trading, staking, and security measures that are difficult for individual users to implement on their own. However, this model also comes with risks. Users rely on the third party for the security of their assets. If the provider is hacked, goes bankrupt, or experiences a service outage, users may lose access to their funds. Furthermore, users may face regulatory issues depending on the jurisdiction and practices of the custodial provider.Ultimately, choosing a custodial service involves balancing convenience and control against the associated risks. Users should carefully consider their needs and the reputation of the provider before deciding to store their assets this way.