Custodial service in cryptocurrency refers to a service where an institution or company manages and stores users’ digital assets on their behalf. This means that the provider holds the private keys required to access these assets, which include cryptocurrencies like Bitcoin and Ethereum.Users benefit from custodial services because they do not need to worry about securely storing their private keys or the technical aspects of managing their wallets. This is particularly useful for institutional investors or those who may not be familiar with the complexities of handling cryptocurrencies. However, the key aspect of custodial services is that users must trust the provider to keep their assets safe. If the provider faces security breaches or gets hacked, users risk losing their funds. Additionally, since the provider controls the private keys, users may not have full control over their assets, which can be a concern for some investors who prioritize self-custody. Overall, custodial services can offer convenience and ease of use while also presenting risks and considerations regarding security and control.