GlossaryBeginner
Self-Custody
Holding and controlling your own private keys instead of relying on a third party.
Self-custody means a person holds and controls their own private keys directly, rather than entrusting a third party, such as an exchange, to hold funds on their behalf.
Self-custody gives someone full, independent control over their assets, but it also means they alone are responsible for securely storing their keys or seed phrase, with no company to turn to for account recovery.
Examples
- Moving funds from an exchange to a personal hardware wallet is a common way to move into self-custody.
- Self-custody removes counterparty risk from a custodian, but adds full personal responsibility for key security.