Custodial services in cryptocurrency refer to third-party platforms that store and manage users’ digital assets on their behalf. These services provide a secure way to hold cryptocurrencies, often utilizing advanced security measures to protect against hacking and theft.Users who opt for custodial services typically create an account with a provider, which then takes responsibility for private keys associated with their digital assets. This means the provider oversees security and backup, relieving users of the burden of managing their keys.While custodial services simplify the process of buying, selling, and holding cryptocurrencies, they also come with risks. Users must trust the provider’s security practices and may be vulnerable to the provider’s operational issues. Additionally, they may not have full control over their assets, which goes against the core principle of decentralization that many cryptocurrencies uphold.Overall, custodial services offer convenience for those new to cryptocurrencies or those who prefer not to manage their assets directly, but they require careful consideration of the associated risks.