Why Self-Custody Matters
Bitcoin is designed to be decentralized money, free from third-party control. However, if you store your Bitcoin on an exchange or with a custodian, you are not truly in control of your funds. The phrase “Not your keys, not your coins” exists for a reason.
What is Self-Custody?
Self-custody means holding your own private keys, ensuring that only you have access to your Bitcoin. Private keys are like the password to your wealth—if someone else controls them, they control your Bitcoin.
Risks of Not Holding Your Own Keys
- Exchange Hacks: Billions of dollars have been lost due to compromised exchanges.
- Regulatory Freezing: Governments can force exchanges to freeze assets.
- Counterparty Risk: You rely on a company’s honesty and security measures.
How to Self-Custody Securely
- Use a Hardware Wallet – Devices like Ledger, Trezor, and Coldcard store keys offline.
- Create a Secure Backup – Write down your seed phrase and store it in a safe place.
- Avoid Screenshots or Digital Copies – Your seed should never touch the internet.
- Consider Multi-Signature (Multisig) – A more advanced method requiring multiple keys to move funds.
Conclusion
Self-custody is the only way to truly own Bitcoin. While it requires security awareness, the long-term benefits far outweigh the risks. If you take responsibility for your wealth, you protect it from both hacks and systemic failures.
Are you ready to take full control of your Bitcoin? Start by moving your funds to a self-custody wallet today.
