Self-custody
Self-custody is managing your Bitcoin private keys yourself without an intermediary — Bitcoin's original peer-to-peer money vision.
Self-custody eliminates counterparty risk but shifts full responsibility to you. Benefits: permissionless, censorship-resistant, no bank-run risk. Drawbacks: mistakes are permanent (lost seed = lost coins), requires operational security. Spectrum ranges from solo hardware wallet (small sums) to institutional multisig (large treasuries).
Example
After FTX's collapse a Bitcoin entrepreneur moves to self-custody: 0.5 BTC in a mobile hot wallet, 10 BTC in a Coldcard cold storage with seed on metal. A required learning moment, no regret in hindsight.
Frequently asked questions
Is self-custody for everyone?
Not for tech-phobic beginners with small amounts — a regulated custodial may suit better temporarily. From multi-year exposure or larger amounts: serious self-custody learning is essential.
Related terms
Further reading
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