Non-custodial wallet
A wallet in which the private keys are fully controlled by the user, with no intermediary. It carries more responsibility, but also more control over the funds.
See also
Cold wallet
A wallet whose private keys are stored offline (for example, on a dedicated device). It is considered the safest way to hold large amounts long-term.
Hot wallet
A wallet that is always connected to the internet (an app or browser extension). Convenient for frequent transactions, but more vulnerable to hacking than a cold wallet.
Custodial wallet
A wallet whose private keys are held by a third party (such as an exchange) rather than the user. The principle "not your keys, not your coins" applies.
KYC
Know Your Customer — an identity-verification procedure that users complete on regulated exchanges to comply with the law.
AML
Anti-Money Laundering — a set of policies and procedures that exchanges and financial institutions use to prevent illicit financial activity.
Airdrop
A free distribution of tokens by a project, usually for marketing purposes or to reward early users. Be cautious: phishing schemes are often disguised as airdrops.