Crypto custody: who holds the keys?
Who holds the keys?
Custody determines who can authorize a transfer and what happens when access fails. A wallet interface and ownership protection are different things.
Start with control
A crypto wallet manages access credentials; it does not hold coins like a physical purse. With self-custody, you manage the keys. With a custodian, a service manages access for you. Each arrangement places different responsibilities on the user.
Think through failure
Losing self-custody credentials can mean permanent loss of access. A third-party service may freeze withdrawals or fail. Read how assets are held, whether they may be lent, and what happens on insolvency. A familiar brand or attractive app is not evidence of protection.
Keep recovery information private
Never put a private key or recovery phrase into a support chat, calculator or portfolio tracker. Hot wallets connect to the internet; offline storage reduces some online exposure but introduces physical loss and recovery risks. This lesson does not choose a wallet or ask you to connect one.
Try the idea
Fictional scenario: the price of an asset has not changed, but the exchange suspends withdrawals. Has the holder’s risk changed?
Check your reasoning
Yes. Market price and access are separate. A price chart cannot show whether you can retrieve assets, how long a freeze will last or what an insolvency process would return.
Which item should never be entered into a portfolio tracker?
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