Cold Storage Basics
Keeping signing keys offline to reduce exposure to remote attacks.
How to Store Bitcoin
Custodial vs. Self-Custody
Who holds the keys, what each model implies, and when each approach fits.
Overview
Self-custody means you control the private keys. You bear full responsibility for backups and security, but no intermediary can freeze or lose access on your behalf without your keys.
Custodial storage places keys with a regulated platform. It can simplify onboarding and recovery support, but you depend on their solvency, security practices, and terms of service. Many holders use both: custodial for trading, self-custody for long-term savings.
Self-custody in practice
Self-custody means you generate and secure keys without delegating spend authority. No company can move funds without your cooperation.
Benefits include direct control; costs include backup responsibility and no password reset.
Custodial models
Custodians hold keys in enterprise systems with policies and compliance programs. Onboarding is faster but access can be frozen per terms or law.
Understand whether your account is title to coins or a contractual claim. Proof-of-reserves and licensing disclosures help evaluate risk.
Hybrid approaches
Many keep trading balances custodial and savings self-custodial. Multisig splits control among people or institutions.
Document who can sign and how emergencies are handled. Custody choice can evolve as skills and balances grow.
