Custodial mining refers to a model where a third party manages and operates the mining process on behalf of users. Instead of individuals investing in their own mining rigs and handling the technical and operational aspects, users can rely on a custodial service to take care of everything.In this setup, participants typically deposit their funds with the custodian, who then uses those resources to mine cryptocurrency. The custodian pools the contributions from multiple users, increasing the overall mining power and chances of earning rewards. This approach can be appealing for those who want to engage in mining without dealing with the complexities and costs associated with hardware, electricity, and maintenance.However, custodial mining comes with certain risks. Users must trust the custodian to manage their assets and distribute profits fairly. If the custodian mishandles funds or encounters security issues, users could potentially lose their investments. Thus, it’s essential to choose a reputable and transparent service provider when considering custodial mining.