https://techcrunch.com/2023/03/16/soul-wallet-crypto-wallet/

If you own a non-custodial crypto wallet like MetaMask, you know the headache of keeping your 16-word seed phrase safe. That’s the responsibility that comes with having full control over one’s digital assets.

A third-party wallet, like one hosted by an exchange, on the other hand, stores private keys on users’ behalf and provides a better user experience. The risk is the lack of transparency over how user funds are managed, which could lead to incidents like the FTX meltdown.