Holding cryptocurrency on behalf of someone else. “Self-custody” means you hold your own private keys; “custodial” means a third party (exchange, wallet provider) holds them for you. Self-custody removes counterparty risk but adds personal responsibility (lose your seed phrase, lose your funds). Custodial arrangements introduce counterparty risk (exchanges can fail, freeze withdrawals, or be hacked).
Custody
Holding cryptocurrency on behalf of someone else. "Self-custody" means you hold your own private keys; "custodial" means a third party (exchange, wallet provider) holds them for you. Self-custody removes counterparty risk but adds personal responsibility (lose your seed phrase, lose your funds). Custodial arrangements introduce counterparty risk (exchanges can fail, freeze withdrawals, or be hacked).
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