Self-custody means you own your private keys and therefore fully control your crypto. No bank, exchange, or platform can access or move your funds.
It follows the idea “not your keys, not your coins.” If you control the keys, you control the assets. If someone else does, you’re trusting them instead.
Self-custody removes counterparty risk. Your assets are not exposed to exchange failures, freezes, or withdrawals being blocked.
At the same time, responsibility shifts fully to you. Mistakes, lost keys, or poor security practices can lead to permanent loss, which makes self-custody a serious risk decision
Self-custody setups usually involve:
- Using hardware or software wallets you control
- Managing private keys or seed phrases yourself
- No recovery option if keys are lost
- Direct interaction with blockchains and smart contracts
Security discipline matters more than convenience
A common mistake is underestimating responsibility. Self-custody removes intermediaries but also removes safety nets.
Another error is poor key management. Losing access or exposing seed phrases often leads to irreversible losses, not recoverable support tickets.
On Stoxcraft, self-custody is covered in Academy content explaining crypto fundamentals, wallets, and ownership models.
It’s also referenced in market analysis discussing exchange risk, cold wallets, and why custody choices matter during periods of market stress.