GlossaryBeginner
Custody
Who actually holds and controls the private keys to a set of crypto assets.
Custody refers to who actually holds and controls the private keys, and therefore the practical ability to move, a set of crypto assets, regardless of whose assets they are considered to be.
Custody can be self-managed, as in self-custody, or delegated to a third party, as with a custodial wallet or exchange account, each with different trade-offs.
Examples
- A person using a hardware wallet has custody of their own assets directly.
- Assets held on an exchange are in that exchange's custody, not the user's, until withdrawn.