Crypto wallet basics: custody, keys and recovery
A custodial wallet is held for you by a platform; a self-custody wallet is controlled by your recovery phrase alone. Whoever holds the keys holds the funds — and a recovery phrase that anyone else sees is a recovery phrase that no longer protects you.
Every wallet question reduces to one thing: who can move the funds. Everything else is interface.
The two models
| Custodial | Self-custody | |
|---|---|---|
| Who holds keys | The platform | You |
| If you lose access | Account recovery is possible | Recovery phrase is the only route |
| If the platform fails | Your funds are exposed | Unaffected |
| Convenience | Higher | Requires discipline |
The recovery phrase
Those twelve or twenty-four words *are* the wallet. Anyone who has them has the funds, permanently and irreversibly.
- Never type it into a website, however official the page looks.
- Never photograph it or store it in cloud notes or chat.
- Write it down, offline, and keep a second copy somewhere separate.
- No support agent will ever ask for it. Anyone who does is stealing from you.
Sign up with a self-custody wallet in about 60 seconds.
Create an accountFrequently asked questions
What is the difference between custodial and non-custodial wallets?
In a custodial wallet a platform holds the keys and can help you recover access. In a self-custody wallet you hold the keys, and only your recovery phrase can restore it.
What happens if I lose my seed phrase?
The funds are unrecoverable. No platform can restore a self-custody wallet without the phrase.
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