There is no advantages that a custodial wallet should ever you that should make you choose them over Non-custodial wallet, promise of higher percentage returns if you stake your assets on them? It's marketing but don't let it get to you.
People who decided to go with Custodial wallets actually had their reasons and I can think of some possible ones:
- Don't have to learn technical things even fundamentals.
- Don't have to secure their wallets by themselves as they believe centralized exchanges as custodians will do it for them.
- Don't have to worry about wallet hacks by service provided by centralized exchanges with more security experts and better security systems.
Perhaps they think of such reasons and on top of that, they are lazy and not ready to learn even technical fundamentals.
Custodial wallets are not safe, it's like locking your bank account and dropping the key to your friend or neighbour for safety reasons, you sure know what could happen later on right?
No offers or advantages from custodial wallets that should entice anyone, i have lost good amount of digital assets trusting custodial wallets in the past and it will never happen ever again.
I agree with you and I have no reason for defending custodial wallets and the advice always is "Using non custodial wallets to have private keys for wallet backups and recoveries" and if possible, prioritize to use open source wallets.