What is Self-custody?
Holding your own private keys rather than trusting a third party to hold coins for you.
Self-custody removes counterparty risk: no exchange failure, no frozen account, no policy change can separate you from your coins. It replaces that risk with personal responsibility for the keys.
The trade-off is real and should be chosen deliberately. Custodial services offer recovery and support; self-custody offers finality. Neither is universally correct.
Related terms
Seed phrase
Twelve or twenty-four words from which every key in a wallet is derived. Anyone with the words has the coins.
Keys & custodyHardware wallet
A dedicated device that stores private keys and signs transactions without exposing the keys to an…
Keys & custodyNot your keys, not your coins
The maxim that coins held by a third party are that party's coins and your claim against them.
Keys & custodyCustodial
An arrangement where a third party holds the keys and you hold a claim against them.
This definition is part of the Bitcoin Logical glossary. For the fuller explanation, start with Learn, or see the live numbers on The Bitcoin Signal.