What does non-custodial wallet mean?

It means you hold the private keys. Only you can move the funds, and the wallet maker cannot recover them for you.

Can I transfer Bitcoin without a wallet?

Bitcoin has to be sent from somewhere and to an address, which means a wallet or an exchange account. With Sense Swap you do not connect a wallet: you send from wherever you hold the coins to a one-time deposit address.

Is a non-custodial wallet better than keeping coins on an exchange?

They trade different risks. An exchange can fail or restrict you. A non-custodial wallet puts the whole job of looking after the keys on you.

Can funds in a non-custodial wallet be frozen?

The wallet cannot freeze them. Some tokens have an issuer-level freeze, and USDT is one. That applies to the token whatever wallet holds it.

What is a non-custodial wallet?

The short meaning

A wallet does not hold coins. The coins sit on the blockchain, and the wallet holds the private keys that let you move them. A non-custodial wallet keeps those keys with you. A custodial account keeps them with a company, and you hold a claim on what the company says you own.

Custodial and non-custodial side by side

Custodial: the company holds the keys, you log in with a password, and the company can restrict or close the account. Many ask for identity checks (KYC).
Non-custodial: you hold the keys, you set up with a recovery phrase, and nobody can lock you out of the wallet.
Both have limits. A company can fail or freeze an account. A non-custodial wallet cannot be recovered by anyone if you lose the phrase.

What you take on

With a non-custodial wallet, looking after the keys is your job.

Write the recovery phrase down and keep it offline. Anyone who has it can take everything.
Never type the phrase into a website or send it to anyone. A real service does not need it. Sense Swap never asks for one.
Check each address and amount before you approve a transaction. A confirmed transfer cannot be reversed.
Keep the wallet app or device updated, and download it only from its maker.

Kinds of non-custodial wallet

Hardware wallet: a small device that keeps keys offline and signs on the device.
Mobile app wallet: keys on your phone, easy to use, as exposed as the phone is.
Browser extension wallet: keys in your browser, convenient for web apps, and exposed to malicious pages and extensions.
Desktop wallet: software on a computer, with similar trade-offs to a browser.

How to tell if a wallet is non-custodial

For most wallets there is a simple test. At setup you are shown a recovery phrase, usually 12 or 24 words. If you can enter the same phrase in a different wallet app and see the same funds, you hold the keys. If you can only get in through a company login, you do not.

A non-custodial wallet is not a non-custodial swap

Sense Swap is not a wallet. It never holds your keys or your funds. You send from your own wallet, or from an exchange withdrawal, to a one-time deposit address, and the result goes straight to the address you gave. You do not connect a wallet to do this.

Funds in a non-custodial wallet can still be affected at the token level. The issuer of a token such as USDT can freeze an address. The wallet app has no say in that. The guide to frozen USDT addresses, linked below, explains how to look one up.

Questions

What does non-custodial wallet mean?: It means you hold the private keys. Only you can move the funds, and the wallet maker cannot recover them for you.
Can I transfer Bitcoin without a wallet?: Bitcoin has to be sent from somewhere and to an address, which means a wallet or an exchange account. With Sense Swap you do not connect a wallet: you send from wherever you hold the coins to a one-time deposit address.
Is a non-custodial wallet better than keeping coins on an exchange?: They trade different risks. An exchange can fail or restrict you. A non-custodial wallet puts the whole job of looking after the keys on you.
Can funds in a non-custodial wallet be frozen?: The wallet cannot freeze them. Some tokens have an issuer-level freeze, and USDT is one. That applies to the token whatever wallet holds it.