Bitcoin Almanack
LearnGlossaryFAQNewsExchangesWalletsETFsIRAsMinersBlockchain
GLOSSARY/SELF-CUSTODY

Self-Custody

SECURITY
DEFINITION
Holding your own private keys instead of trusting an exchange or custodian — the property that makes bitcoin different from every other financial asset.
Every other asset you "own" is an entry in someone else’s database — a broker, a bank, a registrar. Self-custodied bitcoin is the exception: keys in your possession are ownership no institution can freeze, lose, or lend out. Exchange-collapse history (Mt. Gox through FTX) is the case study.
The craft is doing it without becoming your own single point of failure: hardware wallets, tested seed backups, and — at serious size — multisig. Our wallets section and self-custody guide exist for exactly this.
IN A SENTENCE
“After the withdrawal cleared to her Coldcard, the coins were finally hers in the only sense that matters.”

Key facts

The ruleNot your keys, not your coins
Starter kitHardware wallet + steel seed
Serious holdings2-of-3 multisig

Common questions

Is self-custody risky?

It transfers risk from institutions to you. With a tested backup and a hardware wallet, most people are safer than on any exchange.

Do I have to self-custody?

No — ETFs and custodians exist for a reason. But understand what you hold: exposure and IOUs are not bearer money.
← PREVIOUSSeed Phrase NEXT →UTXO
RELATED TERMS
All terms A–Z →

Learn it properly

Our 10-lesson path takes you from “what is bitcoin” to running your own node.
Start Lesson 1 →
© 2026 Bitcoin Almanack AboutFAQHow we reviewAffiliate disclosureContactPrivacyTermsNewsletterSitemap Education, not financial advice.