What is a non-custodial wallet?
Custodial vs. non-custodial
| Question | Custodial | Non-custodial |
|---|---|---|
| Who holds the keys? | The service. | You. |
| Account recovery | Through the service (email, support, identity). | Only via your recovery phrase. No support reset. |
| If the company fails | Your access may depend on the company. | Your keys still work if you have the phrase. |
| User responsibility | Lower; the service secures keys. | Higher; a lost phrase cannot be recovered. |
The recovery phrase
A non-custodial wallet generates a recovery phrase (seed phrase) — usually 12 or 24 words. Anyone with the phrase can move the funds. Write it down offline, never type it into a website or chat, and never share it with support. A lost phrase means permanently lost funds; no company can restore it.
What "not your keys" means
"Not your keys, not your coins" is the shorthand for the custodial risk: when a service holds your keys, a hack, insolvency, or freeze at that service can affect your access. A non-custodial wallet removes that specific counterparty risk but transfers all key-management responsibility to you.
Insurance and protections
Digital assets in any wallet are not bank deposits, can lose value, and are not FDIC insured. The FDIC's fact sheet is explicit on this. There is no government deposit insurance for crypto.
How this relates to Kronos
Kronos includes a non-custodial wallet for supported digital-asset sends and receives where enabled. That means you control the keys and the recovery phrase for wallet activity. Supported assets, networks, locations, fees, and availability are shown in the current app flow before an action. KronosPay LLC is a financial technology company, not a bank. Read the bank-status page.
Primary sources
General educational information only; not financial or legal advice. Digital assets can lose value.