Lessons › Wallets & keys
Wallets & keys · Lesson 1 of 3
Custodial vs self-custody
When your crypto sits on an exchange, the exchange holds the keys. That is a custodial wallet — convenient, but you rely on them.
A self-custody wallet means you hold the keys yourself. Nobody can freeze it, but nobody can recover it for you either.
Many people keep trading money on an exchange and long-term savings in self-custody.
Key points
- Custodial = the exchange holds keys
- Self-custody = you hold keys
- Mix both by purpose
Education only, not financial advice. Crypto is risky — only use money you can afford to lose, and check it’s legal where you live.