Custodial vs. Non-Custodial vs. Self-Hosted Crypto Payment Gateways
Compare custodial, non-custodial, and self-hosted crypto payment gateways, including wallet control, transaction fees, security, and operational risks.
Custodial, non-custodial, and self-hosted crypto payment gateways each present different trade-offs between convenience and control. The gateway holds the funds in the first scenario, which is convenient but risky as the merchant has no direct control over the money or withdrawal process. The gateway watches while the merchant holds the keys in the second scenario, providing the most control and safety to the merchant, but requiring the merchant to handle key management and related issues.
The third scenario involves running the entire payment infrastructure oneself, offering maximum control and security but demanding significant technical expertise and ongoing maintenance. Merchants must weigh the convenience against the risks and responsibilities associated with each option.
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