Summary:
Self-custody means taking full control over your bitcoin by holding your own private keys, instead of relying on a third-party to safeguard your funds.
Details:
When you self-custody your bitcoin, you’re the only person who can move or spend your funds. This provides the highest level of sovereignty and aligns with the ethos of Bitcoin—being your own bank.
However, self-custody comes with personal responsibility. You must secure your keys and backups, and no one can recover your bitcoin if you lose them. For serious holders, self-custody is considered essential.
Key Features:
- Full control over your bitcoin—no counterparty risk.
- Eliminates dependence on exchanges or custodians.
- Requires responsible key and seed phrase management.
- Can be done via software or hardware wallets.
- Enables censorship resistance and financial independence.