Self-custody

How it is used

Wallets that allow it are called self-custodial or non-custodial wallets. Self-custody removes the risk of an exchange freezing or losing your funds, but it moves all the responsibility to you: if the seed phrase is lost or stolen, nobody can help. Common phrases: move to self-custody, self-custody wallet.

Example sentences

1. After the exchange paused withdrawals, many users moved their coins to self-custody.

2. Self-custody gives you full control, but you are the only one who can protect the seed phrase.

Common collocations

• move to self-custody
• self-custody wallet
• self-custodial wallet
• full self-custody

Related terms

• custodial walletA wallet in which a company, such as an exchange, holds the private keys for you. It is easier to use and recover, but you depend on that company to give you access to your funds.
• private keyA secret number that proves you own a wallet and lets you sign transactions. Anyone who has the private key can move the funds, so it must never be shared.
• seed phraseA list of usually 12 or 24 ordinary words that can rebuild a wallet and all its private keys. It is the master backup of a wallet, so whoever has it controls the funds.
• hardware walletA small physical device, often similar to a USB stick, that stores private keys offline and signs transactions inside the device, so the keys never touch an internet-connected computer.
• cold walletA wallet whose private keys are kept completely offline, for example on a hardware device or on paper, so that hackers cannot reach them over the internet.

More terms: Wallets & Keys

• wallet
• public key
• wallet address
• hot wallet
• multisig