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Now NFTs are everywhere. Artists and Tech geeks are exploring NFTs like never before.

The main motive behind this NFT race is obviously money, even a faint picture made millions of dollars through NFT.

NFTs AKA non-fungible tokens as a name it is non-fungible or can’t be replaced. If you convert your picture as an NFT, there is only one NFT available, and you can’t copy it, but you can store and send it.

NFTs achieve this non-fungibility through blockchain, so it is impossible to tamper with an NFT.

These unique characteristics of NFTs are a goldmine for artists because they can easily convert their hard work to NFT and sell it.

There are many marketplaces anyone can create and sell the NFTs, but the real challenge is storing one.

There are two types of NFT storage. The first is Custodial, and the second one is Non-custodial.

Custodial NFTs.

Custodial NFTs are stored in a wallet or a platform that has control of your private key.

In the blockchain, sending and receiving are done with the help of private and public keys.

The public key is like an email address that is available to the public to receive an email, but a private key is like a password, so whoever has the correct password can only read and send the emails to others.

If a password AKA Private key controlled by a third party other than the NFT is called Custodial NFT.

NFT custodial marketplaces act as an escrow for sale, where you fund the custody of the platform before assets are exchanged. The platform acts as an intermediary providing a marketplace to interact with other users.

Benefits of Custodial NFTs.

• Easy to Use:
  Custodial NFT services are easy to use. You don’t need to have any expertise in Blockchain or cryptography or any other technical know-how.

• Easy Recovery:
  You can easily recover the account and the funds in custodial service because third parties control the private key.

• Free to Use:
  Custodial NFT services never charge you any upfront money, so you can store NFTs without paying an amount.

Drawbacks of Custodial NFTs.

• Third-Party Control Private Key:
  Ultimately the private key is the heart and soul and the only proof that you’re the owner of an asset on the blockchain. In custodial service, this private key is held by a third party which could compromise your asset security.

• KYC Needed:
  To use any custodial services, you must have to sign up with an email, and many ask you to submit documents like address proof, a passport to comply with government regulations.

Non-Custodial NFTs.

Opposite to Custodial NFTs, Non-Custodial NFT services maintain full privacy without holding any private key. Instead, they give full permission to the user to control the private key.

Non-Custodial NFT marketplaces facilitate direct connections between users. Platforms like this allow you to become your own bank.

Many Non-Custodial NFT marketplaces also offer NFT minting services (validating information on the blockchain) that can be used to create your own NFT. This minting process requires that your valuable asset be uploaded in the form of a digital file either in Picture, GIF, Video, or Audio form, and a certain fee is paid to mint cryptocurrencies to represent your valuable asset.

Ultimately Non-Custodial NFT marketplaces allow you to exchange assets without middlemen in a decentralized network.

Benefits of Non-Custodial NFTs.

• You Have the Control:
  In a non-custodial service, you have full control over your NFTs because you have the private key, not the platform.

• Highly Secure:
  Since you have control over a private key, services do not store any sensitive, personal data on your behalf.

• Record Transactions in Real Time:
  Non-Custodial services do not act as middlemen or escrow, so the transaction you did using the platform gets recorded in real-time on the blockchain.

Drawbacks of Non-Custodial NFTs.

• Safety Risk:
  Non-Custodial NFT services are both secure and insecure at the same movement because you have the control; if you made any mistake in securing a private key, for example, while transacting using public wifi, then someone might find a vulnerability and take all the funds.

• Not Free:
  Non-Custodial NFT services charge you especially when you sell an NFT they charge you a fixed fee.
  Non-Custodial hardware wallets also cost you upfront money.

• Hard to Recover:
  It is hard to recover funds from the Non-Custodial platform if you lose your private key.

Conclusion.

Now you understand the difference between Custodial and Non-Custodial NFTs.

When it comes to NFT marketplaces, Non-Custodial markets like OpenSea, SuperRare are famous. But in a wallet segment, there are plenty of options you can choose from the Custodial and Non-Custodial.

Here I created a post listing the best NFT wallets, which will help you choose the best one.

Finally, what do you think about Custodial and Non-Custodial NFTs? Do mention it in the comments.