Self-custody is a model of crypto asset ownership in which the user directly controls the private keys required to manage the assets. The keys are not entrusted to a crypto exchange, custodian, or other intermediary.

Self-custody can be implemented through a software wallet or hardware wallet. In both cases, the key material remains under the user’s control and transactions are authorized through cryptographic signatures.

User responsibility in self-custody

The user is responsible for backup procedures, seed phrase security, device security, and transaction verification. Loss of a key, exposure of the recovery phrase, or approval of a malicious transaction can result in irreversible loss of assets.

Self-custody therefore changes the trust model: the user relies less on a custodian but assumes more technical and operational responsibility for asset security and recovery.