Non-custodial solutions are crypto wallet solutions that offer you full control over your private keys and, therefore, full control over your crypto assets. It is the opposite of a custodial wallet, whereby users forfeit control of their funds to a centralized party like exchanges to protect their assets. The private keys are not managed by the user but by the platform while offering fantastic wallet UI/UX, easy access, and security.
Non-custodial solutions grew in popularity due to the need to keep assets in possession of the users as hacks in exchanges grew. With non-custodial solutions, users now hold their keys and assets in encrypted storage. Popular types of non-custodial solutions include: desktop wallets, hardware wallets, and mobile wallets.
These wallets are on other devices disconnected from the internet and in possession of the owner of the assets. If a custodial wallet is lost or stolen, the digital assets inside cannot be retrieved. The problem with non-custodial wallets is the long seed phrase users have to input to access the account, which, if entered incorrectly too many times, will lock your assets forever.