Do you own research but I’ve found that NEXO doesn’t require KYC if you stay under $20k per day and only touch crypto. Withdraw limits
But yes–everyone should be mindful if the service is custodial or non-custodial. If you don’t have your private keys, they aren’t your coins. However–Incognito is quasi-custodial as well. They can (and regularly do) turn off access to the app features so your funds are stuck just the same during that time. And if you request an unshielding or a withdraw of your provide—you’re at their mercy for when they process it. HOWEVER, one thing is very different in that Incognito is devoted to privacy so likely they will always make that a priority. And the roadmap has many plans to decentralize and move to a less custodial/centralized way of operating.
There are a lot of nuances to each project. I personally like NEXO, Celsius, and Incognito for different reasons but I do not lump them together into one category (except they all have a feature to earn on your deposited crypto).