Custodial vs Non-custodial Bitcoin Wallets

Jimmy Lyons

When it comes to buying and storing bitcoin online, you have two basic options: custodial accounts, where the storage of your private keys is managed by a professional organization, or a private wallet, where storing those private keys is your responsibility. At Village, we offer custodial accounts designed for safely storing Bitcoin for your children, making it easy to save for their future and teach them about this new financial paradigm. 

Our custodial wallets make investing in your child’s future simple, seamless, and easily accessible to everyone who may want to contribute to it - regardless of their experience level with crypto.

Let’s go over a few reasons why we offer the custodial accounts that we do, and how they make investing in bitcoin for your kids a safe, stress-free experience!

What are the advantages of Custodial Bitcoin Wallets?

The main advantage of our custodial bitcoin wallets is their ease of use. An account can be set up in just a few simple steps, and the process of purchasing Bitcoin for your child is simple enough that even your non-tech savvy relatives can send your child Bitcoin in just seconds.

Another advantage of custodial accounts is that they greatly reduce the responsibility on the investor to safeguard their own funds. Instead of requiring users to backup multiple copies of their private keys and store them offline somewhere safe, a custodial account simply requires a normal password and 2FA authentication.

Our goal is to simplify these complex processes to make buying Bitcoin easy and accessible for everyone, and to help bring Bitcoin to the remaining 75% of the population that have not yet purchased or interacted with it.

On the other hand, non-custodial wallets present a steep learning curve that is not recommended for beginners and non-tech savvy individuals. With a non-custodial wallet the user is required to safeguard their own private keys. If they lose those private keys, their crypto is gone forever, as there is no backup copy stored anywhere online.

This type of wallet would also allow parents or guardians - anyone with access to the private keys - to take the invested assets, whereas our custodial accounts guarantee the assets remain locked until your child turns 18.

This is, unfortunately, far from uncommon. Chainalysis, a blockchain analytics platform, has estimated that nearly 4 million bitcoin have been permanently lost due to the loss of private keys. As of July 2022, that makes up more than 23% percent of the entire circulating supply of bitcoin, worth more than $90 billion.

So, why does Village offer custodial wallets?

Our goal at Village is to offer simple, stress-free custodial accounts for minors to help them begin learning about finance and saving for the future from a young age. Our goal is to help bring Bitcoin to the 75% of the population who have not yet participated, and help build the global financial system of the future.

We are strong believers in teaching children about saving, but we also believe kids should be kids! Our services are designed to introduce newcomers of all ages as well as their children to the world of Bitcoin in a manner that is easy to use and simple to understand.

Offering a custodial account allows us to handle the storage of your crypto for you, the experience user-friendly and accessible to people of all ages and experience levels. This way your children can learn about bitcoin, saving, and the future of digital currency safely, without the responsibility of managing their own keys.

Our simplified UX design also lets you send bitcoin to your child’s account in just a few clicks, making the process easy and giving you peace of mind. All you have to do is watch your child’s bitcoin investment grow!

While purchasing and sending Bitcoin is a complex process on most platforms that involves cryptographic wallet addresses and keys, we abstract away this complexity for our users to make buying Bitcoin for your children a straight-forward, risk free process.

Our platform is so simple that even your parents and relatives will be able to send your child bitcoin without needing anything more than a bank connection and your email address! It takes a village to raise a child, and our aim is to bring that village together with a platform that allows everyone to participate in your child’s financial future.

Our Security Practices

When storing crypto in a custodial account, it is essential to store it with an organization you can trust to manage your funds responsibly. At Village we practice the highest enterprise standards when it comes to storing your bitcoin securely. 

Our security practices and our simple user-experience design are created with one goal in mind: to make it easy for you to invest in your child’s future, and for your entire village to invest with you.

Jimmy Lyons

Grow your child's finances with a Custodial Bitcoin Savings Account

Open an account today with the help of our expert team.