Self-Custody
Holding your own crypto instead of letting a company hold it for you. You control the passwords, so only you can access it.
Example
Moving Bitcoin from Coinbase to your own hardware wallet. If Coinbase gets hacked or shuts down, your coins are safe.
Related Terms
Core Concepts
⚖️Self-Custody vs Exchange Custody
| Feature | self Custody | exchange |
|---|---|---|
| Who holds keys? | You | Exchange |
| Can funds be frozen? | No | Yes |
| If company fails? | Funds safe | Funds at risk |
| Recovery if you lose access? | Only with backup | Customer support |
| Security responsibility | 100% on you | Shared |
| Best for | Long-term holders | Active traders |
⚠️Risks & Warnings
- •Full responsibility for security - no one can help if you make a mistake
- •Lost seed phrase = permanently lost funds
- •Sophisticated attacks target self-custody users (phishing, malware)
- •No insurance or protection if you get hacked
🚀Getting Started
- 1Start with a reputable software wallet (MetaMask, Rainbow)
- 2Graduate to a hardware wallet for significant holdings
- 3Practice with small amounts before moving large sums
- 4Create and test your backup before depositing serious money
- 5Learn to verify transaction details before signing