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Non-custodial wallets, also called “hot” wallets, are popular because they keep the crypto in your control. The drawback is that you must remember your seed phrase (essentially a password). When you sign up for an exchange, you get a custodial wallet as part of your account. You can instantly send money from this wallet without worrying about public and private keys. You don’t have to worry about public and private keys as you would with a non-custodial (“hot”) wallet. As soon as you buy crypto on the exchange, it’s automatically added to your wallet.