Crypto custody

Crypto custody describes who controls the secret codes that unlock your digital money and what that control means for your freedom and safety. A custodial setup is when a service holds those codes for you and runs the accounts. An exchange is a common custodial service where many people buy, sell and trade crypto. Custodial services are easy to use and often provide high liquidity and friendly interfaces. They also require identity checks and may charge fees on trades and transfers. The downside is clear. If you do not control the secret codes you do not truly own the assets. You can face withdrawal limits, freezes during outages, or restrictions during legal actions. Custodial platforms are also prime targets for hackers because they hold many keys in one place. Non-custodial custody means you keep the keys yourself. That model gives you full control and removes the single point of failure that large platforms create. There are practical forms of non-custodial custody. Hot wallets run on internet-connected devices and are convenient for daily use. Cold storage keeps keys offline and is best for long-term holdings. Hardware wallets are a common cold storage tool that stores keys in a device isolated from the internet. Multisignature setups require multiple independent approvals before funds move. Air-gapped signing uses a device that never touches the internet to sign transactions. Paper or metal backups hold seed phrases and should be kept in secure physical locations. Good custody practice starts with deciding how much you need to keep online for trading and how much to lock away for safety. Use a small hot wallet for active trades and a larger cold solution for savings. Always back up your seed phrase in at least two secure places and never share it with anyone. Use strong unique passwords and two-factor methods for accounts that still exist with custodians. Verify addresses on hardware devices or using independent tools before sending funds. Consider splitting holdings across different custody methods so a single loss does not wipe you out. Remember the mantra: control the keys and you control the coins. Custody is not just a technical choice. It is a statement about responsibility, risk tolerance and the kind of financial freedom you want to hold in your hands.