BEGINNER PATH / 12
SELF-CUSTODY & SAFETY.
Self-custody removes reliance on another company to authorize your withdrawal, but it also makes you responsible for protecting the information that controls the wallet.
COMPARE / 10
CUSTODIAL VS SELF-CUSTODY.
The important question is who ultimately controls the keys needed to authorize spending.
| CUSTODIAL SERVICE | SELF-CUSTODY WALLET |
|---|---|
| The provider safeguards the keys and operates the account or wallet service. | You control the keys or recovery material needed to spend. |
| Account recovery may be possible through the provider. | Losing the necessary recovery information can permanently remove access. |
| You rely on the provider's security, solvency, policies and withdrawal availability. | You remove that custody reliance but accept direct operational responsibility. |
Before using real Bitcoin: understand your backup, verify receiving information carefully, start with small amounts while learning, and never disclose wallet recovery information.