What is a noncustodial wallet?

A noncustodial wallet is characterized by the user’s control over their private keys. This means that the individual using the wallet has sole ownership and responsibility for their funds, as they do not rely on a third party to manage or store their cryptocurrency. This level of control allows users to ensure their assets are secure and provides them with greater privacy compared to custodial wallets, where a service provider holds the private keys on behalf of the user.

While other options reference different aspects of cryptocurrency wallets, option B accurately defines a noncustodial wallet by focusing on the user's direct ownership of the private keys, which is a fundamental principle of decentralized finance and user autonomy in cryptocurrency management.