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What is Self Custody

Self-custody means being the sole owner and controller of your Bitcoin, without relying on third parties like exchanges or banks. It involves holding your own private keys, which are required to access and spend your Bitcoin. This ensures full financial sovereignty—no one can freeze, confiscate, or restrict your funds.

Unlike traditional banking, where financial institutions control access to your money, self-custody ensures that only you have authority over your Bitcoin. This aligns with Bitcoin’s core principle of decentralization, removing the need for trusted intermediaries. However, with this freedom comes responsibility. Losing access to your private keys means losing your Bitcoin forever, so securely managing backups is essential.

How to Achieve Self-Custody​

Self-custody can be implemented in several ways:

  • Software Wallets – Applications that store private keys on your device.
  • Hardware Wallets – Physical devices that securely store keys offline.
  • Air Gapped Setups – Highly secure methods where the private key is never exposed to an internet-connected device.