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Security term

Self custody

Holding your own keys, with everything that follows from that.

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By the Orca Crypto teamUpdated 2026-09-13How we check this3 min readDefinition
Definition

Holding your own keys, with everything that follows from that.

Self custody means you control the private key and nobody can freeze, seize or lose your funds on your behalf. It is the point of the whole technology.

It also means you carry the entire responsibility. No password reset, no support line, no reversal. The tradeoff is real and worth making deliberately.

In practice

A sensible path is to keep trading funds on an exchange and long term holdings in a hardware wallet you control.

What people get wrong

That self custody is an advanced setting. It is the default state of crypto, and custody by somebody else is the exception. What is genuinely advanced is the responsibility, because with self custody every mistake is final and there is nobody to appeal to.

Common questions

What are the real risks of self custody?
You, mostly. Lost phrases, bad backups and approving something malicious account for far more losses than any technical failure. The upside is that no company can freeze, lose or lend out your funds.
How much should I hold in self custody?
Enough that the habit is real, and start before the amount is frightening. Practicing a recovery with a small balance is worth more than any amount of reading.

Where this comes up on the site

The guides that actually use this word, rather than a list of everything we have written.

Where to go next

More security terms

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