Do you wish to invest in the trending NFTs? Confused between which type of NFT marketplace to pick? Or are you in a dilemma about Custodial or Non-custodial NFT services ? Fret not , just read through and find out more regarding Custodial and Non-custodial NFT marketplaces to decide for yourself which one would suit best for your needs.
Introduction to NFTs, Crypto Wallet
Never before NFTs are in highest demand ever, they are the current trend in the crypto space for enthusiasts and investors alike. So what is NFT? Non-fungible tokens are digital tokens stored on the blockchain, containing certificates of ownership for unique digital assets. Now to safely store these NFTs you need a NFT wallet or Crypto Wallet which stores your private keys. These private keys are the passwords that let you access all your crypto and NFTs.
Crypto Wallets don’t store the cryptocurrency or NFTs, it only holds your private keys to cryptocurrency and NFTs which are stored on the Blockchain. In case you lose the private keys , then you lose access to your crypto and NFTs. The two most important aspects of Crypto Wallet refer to a public key and private key to facilitate transactions and storing cryptocurrencies or NFTs.Now Crypto Wallets come in two types also Custodial and Non-custodial, choosing between these two types will also determine which type of NFT marketplace would match for the Wallet you have.
Significance of Custody?
At the rapid pace NFTs have been growing, it shows the high potential it offers to the world of Crypto. But make no mistake with understanding the custody of the NFT all together. It is important to understand who controls your NFT after you have created or purchased it. Although NFT offers the ownership over the digital asset, you might not have complete control over it, Surprising ?!
You might also let a third party have custody of your NFT and take care of it for you. Or you might
want to take the custody of your NFT on your own. Now you see the difference in the custodial or non-custodial services emerging with reference to the custody of the NFT both for storing in Wallets and on the platforms for creating, trading etc.
What is Custodial NFT marketplace ?
A custodial NFT marketplace helps in storing and managing your NFT wallets private key and NFTs. Basically means the control of NFTs and Wallet’s private key are with the custodial NFT marketplace which helps in managing them for you. So the absolute custody of the private keys are not given to the wallet owner; instead it is kept with them, only felicitating the transactions and services when required with login.
This helps for the beginners who are unfamiliar with the navigations of the marketplace and linking wallets.Makes it easier to only concentrate on the NFTs rather than worry about other aspects. The Custodian also supports when you forget the password and recovery of the same is very easy compared to the latter.With robust security features offered by the custodial services you have to rely on them to keep your private keys safe and secure.
Features –
- Extremely beginner friendly to start into NFTs.
- NO hassle to figure out wallet linking.
- Help managing and storing private keys.
- Support for forgotten passwords and recovery.
Examples-
Nifty Gateway is among the most popular custodial NFT marketplace, it is a web 3 platform providing easy movement of assets without transaction gas fees. NFTs on this platform are stored in a highly secure wallet powered by Gemini’s custody technology enabling collectors with a much lower and easier way to move their NFTs. They also help with password recovery and feature flexible payments.
Binance NFT marketplace is also another popular custodial marketplace which brings together artists, creators and enthusiasts on a single platform to create and trade NFTs. It features 3 product lines : Events, Marketplace and Mystery Box. With very low gas fees and easy to navigate marketplace this platform is a good custodial NFT marketplace.
What is a Non-Custodial NFT marketplace ?
So now in Non-custodial NFT marketplace the complete control of the NFTs and private keys are with the owner or creator. Here the asset holder has the absolute custody of the private keys and NFTs, not with the non-custodial NFT services. The asset owner will decide on the transaction fees and other aspects in non-custodial services.
Although it provides better control over your assets or NFTs , it is upon the owner to take responsibility for the security measures for safekeeping private keys and NFTs. You should also have to remember the private keys and backup the seed phrase to ensure safety of NFTs and crypto. Fortunately with non-custodial services, you can add further security measures alongside the existing for safe storage of private keys.
Features –
- Full Control over your NFTs and Crypto.
- Higher security to keep assets safe.
- Complete power to store or move assets between.
- Access to decentralized exchanges with low gas free.
Examples-
- AirNFTs :
AirNFTs is a non-custodial NFT marketplace built on BSC, Fantom and Polygon mainly focused on rich user experience and ease to create, buy, sell and trade NFTs. With just one click you can create NFT and set prices or use auctions. Earn its native tokens AIRT for staking and trading NFTs, use royalties for secondary sales.
- OpenSea :
OpenSea is among the biggest non-custodial NFT marketplaces for crypto collectibles and NFTs. You can buy, sell and discover most exclusive digital assets here. This platform provides excellent options to create and trade NFTs with zero gas fee and no worries about Ethereum blockchain management.
Key Differences between Custodial and Non-custodial NFT marketplace-
| Parameters | Custodial NFT marketplace | Non-custodial NFT marketplace |
| Private Key | Control to custodians. | Control to the owner. |
| Accessibility | Must register account | No registration required |
| KYC | Verification required | Not required |
| Transaction Costs | Relatively high | Comparably lower |
| Security | Depends on custodian | Full authority over security |
| Support | Full customer support | Limited or no support |
Conclusion –
The choice between Custodial or Non-custodial NFT marketplace is completely dependent on the requirements you are looking for, although both have their own advantages. For someone who is looking for higher control over wallet and security then non-custodial NFT services would make a greater sense considering the leverage of control and options it provides to play around.
Although for someone who is just starting into NFT space and still learning the in’s and out’s of the crypto world, custodial NFT services would make greater sense due to less technicality and lesser things to worry over. Choosing between either of these is the right choice but choosing the one for your needs is what matters the most.
