Using a non-custodial wallet for Bitcoin storage offers several advantages, primarily centered around security, privacy, and control. Unlike custodial wallets, where a third party holds the private keys, non-custodial wallets give users full ownership and control over their private keys. This eliminates the risk of losing funds due to hacks, mismanagement, or insolvency of the custodian, as seen in cases like the Mt. Gox exchange collapse.

Non-custodial wallets also enhance privacy, as they do not require users to share personal information with a third party. Transactions can be conducted anonymously, aligning with the decentralized ethos of Bitcoin. Additionally, users have complete autonomy over their funds, enabling them to transact without restrictions or reliance on intermediaries.

Another advantage is transparency and trustlessness. Since users manage their keys, they can verify transactions directly on the blockchain, ensuring transparency without needing to trust a third party. This also reduces the risk of censorship or frozen accounts, as no central authority can interfere with the wallet.

However, non-custodial wallets require users to take full responsibility for securing their private keys. While this demands greater technical knowledge and caution, the trade-off is enhanced security, privacy, and control, making non-custodial wallets a preferred choice for experienced Bitcoin users.