Responsibilities of self-custody
Self-custody means managing the keys that an exchange might otherwise hold for you. It gives control but also assigns responsibility for recovery phrases, devices, and approvals.
Seed phrases and recovery
Never store a recovery phrase in an online note or share it. Use official wallet sources and test a destination address and network with a small amount first.
Separate devices and accounts
Security is an ongoing process. Review device updates, backup locations, phishing messages, and fake support accounts regularly. Protecting access comes before chasing a reward rate.
A hypothetical recovery scenario
A hypothetical user who loses a phone may restore access on a compatible wallet if the recovery phrase was stored safely. But a phrase exposed in cloud photos, chat, or online notes is not protected merely because the phone has a screen lock. A wallet app is better understood as an interface for keys than as a vault holding the assets.
Verify before signing
Read the wallet’s official guidance on supported networks, recovery standards, passphrases, and address verification, then practice recovery with a small amount. Treat requests to enter a seed phrase on a webpage or to customer support as suspicious, and independently verify domains, contract addresses, and signing permissions. Include access control and disaster recovery in backup planning.
Limits and incident response
Self-custody can reduce third-party custody exposure while placing loss, phishing, malware, and mistaken signatures on the user. Multisignature and hardware devices do not remove configuration or supply-chain risk. Before moving significant value, confirm the address and network and understand whether official reporting or freezing mechanisms exist.