Custody
The safekeeping of crypto assets, either by yourself or by a third party.
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What is custody?
Custody refers to how crypto assets are stored and who controls the keys to them. It is a central question in crypto, captured by the phrase not your keys, not your coins.
Self-custody versus custodial
Self-custody means you hold your own private keys and take full responsibility for them. Custodial services hold assets on your behalf, trading some control for convenience and support.
Weighing the risks
Each approach carries different risks. Self-custody removes reliance on a third party but puts the full burden of security on you.
Related terms
A business that offers crypto services such as trading or custody.