Definition
An arrangement for holding assets and managing access to them on a client’s behalf; in crypto, it is important to establish who controls the keys.
What you need to know
Custody with a provider involves dependence on its terms of service and security; for example, under Coinbase’s US agreement, the provider keeps the keys to the hosted wallet. With a self-custody wallet such as Coinbase Wallet, the user is responsible for safeguarding the keys and recovery methods. Self-custody does not eliminate risk: losing a key without a recovery method may result in losing access to the assets.
This information is for learning and comparison, not investment advice. Verify product details and eligibility conditions against the current source.
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