How it differs from exchanges
On an exchange, the platform controls custody. With self-custody, the user controls wallet access and backup.
Tradeoff
Self-custody can reduce platform risk but increases personal responsibility. Losing the recovery phrase can mean losing access.
Common mistake
Do not treat Self-custody in crypto as a universal rule. Exchanges, wallets and card apps may use the same term differently, especially around limits, fees, networks and account restrictions.
User action
Before relying on this term, check the provider's official help page, fee schedule or product terms. If funds are involved, test with a small amount first and keep a record of the transaction or setting.
Related pages
Compare wallets or read when to buy a hardware wallet.
How to use this term
Use self-custody terms when deciding whether to keep funds on an exchange or control the wallet yourself.
What to check
Check recovery phrase safety, network selection, transaction testing and whether you can handle irreversible mistakes.