A non-custodial exchange is a type of cryptocurrency exchange where users retain control of their funds throughout the trading process. In a non-custodial exchange, users do not have to deposit their funds into the exchange's wallet before making trades, unlike in custodial exchanges where users transfer their funds to the exchange's wallet and rely on the exchange to hold and manage their assets. Instead, non-custodial exchanges allow users to trade directly from their own wallets, providing a higher level of security and privacy.
