Unfortunately mostly custodial with zero privacy.
Show me ten random people here on Nostr and I show you that 8/10 use custodial wallets.
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Again, a complete BS comment.
Can I use Phoenix wallet for Bitcoin Lightning Network payments and self-cusotdy my sats? Yes. Same with BullBitcoin wallet? Yes. Aqua? Yes. Muun? Yes and many many more. Also easy to use.
Custodial wallets have their own functions. If people keep small amounts of money in them there is no issue at all. For the people that don't like them there is more than enough options.