What’s a self-custodial wallet?

A self-custodial crypto wallet is a digital wallet where you maintain complete control over your cryptocurrencies and other digital assets, such as Bitcoin, Kaspa, Dogecoin, Ethereum, Tron, Monero, Solana, Hyperliquid, and Sui. In contrast, custodial crypto wallets and traditional financial institutions like banks hold your assets on your behalf, requiring you to trust them not to misuse your assets and to adhere to security protocols.

In contrast, self-custodial wallets empower users by allowing them to manage their private keys and funds directly, eliminating the need for intermediaries. This direct control offers significant advantages in terms of privacy and security, as users are solely responsible for safeguarding their assets against potential hacks or mismanagement. A key feature of self-custodial wallets is the use of mnemonic phrases, often called seed phrases. These phrases are crucial for recovering access to your wallet and should be stored securely offline. Additionally, many self-custodial wallets offer enhanced functionalities, such as integration with decentralised exchanges (DEXs) and non-fungible token (NFT) platforms, allowing for seamless interaction with various blockchain ecosystems. However, it is essential for users to understand that with this autonomy comes significant responsibility. If a user loses access to their private keys or fails to back up their seed phrase properly, they risk losing their digital assets permanently. Therefore, education on best practices for securing these wallets is paramount. In summary, while self-custodial crypto wallets provide greater control over one’s financial assets in an increasingly digital economy, they also require users to be vigilant and knowledgeable about maintaining the security of their holdings.

Moreover, self-custody aligns perfectly with the principles of decentralisation that underpin cryptocurrencies. It empowers users to take responsibility for their own wealth while also contributing to a more resilient financial ecosystem, resistant to censorship and centralised control.

By embracing self-custody, you’re not only safeguarding your assets but also participating in a movement towards financial freedom. In this new paradigm, it’s crucial to educate yourself on best practices for securing private keys and managing wallets effectively – after all, with great power comes great responsibility. Rest assured that by choosing self-custody, you are making a proactive decision towards greater sovereignty over your financial future.

Custodial versus self-custodial wallets

We’re very used to leaving things in the custody of others. We routinely leave assets in the custody of banks, investment managers, and exchanges.

In the early days, banks held only physical cash and were places where you could leave your money and valuables, confident they were protected. Banks had vaults, while you had pillows and floorboards.

The self-custody version of a bank vault is a home safe: you give up much of the bank’s security but have complete control over the assets stored in it. This means you have control over them, and nobody else does. However, the responsibility to protect those assets is entirely yours.

In modern finance, it’s standard practice for service providers like banks to retain custody of your assets. This means that when you want to withdraw money from your bank account, although you have a legal claim to the funds, you’re effectively asking for permission from your bank. Banks can, and often do, deny such permission, and their reasons may not always align with the best interests of individual customers. Furthermore, even when service providers uphold the custody rights of their customers in good faith, external factors may force them to deny you access to your money. For example, a government might compel banks to restrict withdrawals to curb runaway inflation, as happened in Greece in 2015. Another, perhaps more insidious example, is Operation Choke Point, where the US government pressured banks to deny services to people involved in various (legal) industries it deemed morally corrupt.

There are drawbacks to relying on a bank or a crypto exchange for custody of your assets. For example, you must always authenticate yourself to your bank before accessing your accounts. This is usually beneficial, until an unusual transaction (like buying a medieval goblet) appears suspicious to the custodian, who may then lock your accounts. Alternatively, a financial crash might occur, leading your custodian to place limits on the sale of stock from your accounts, or worse, a market crash could force your bank into bankruptcy, preventing you from withdrawing your money.

With the advent of blockchain-supported decentralised systems, of which Bitcoin is the primary example, it became possible, for the first time, to provide self-custodial financial services on a large scale. In the self-custodial model, the customer retains full custody of their assets at all times, using the service provider merely as an interface for conveniently managing their assets.

When you use a self-custodial wallet, you don’t need permission to use the service. There’s no account approval process, so anyone in the world can download the app and start using it immediately. Additionally, only you have access to your funds. This makes it nearly impossible for the service provider, a government, or anyone else to prevent you from using your funds exactly as you wish.

This is one of the critical differences with cryptocurrency: you can be the custodian of your own digital assets, which is where the term “self-custody” comes from. Of course, with great power comes great responsibility! In the self-custodial model, since you alone have access to your funds, you must manage your wallet carefully. This includes backing up your wallet and adhering to password management best practices.

What’s the difference between self-custodial and non-custodial?

Nothing. Self-custodial = non-custodial.

Why Is Self-Custody Important? Eight (8) Benefits of Self-Custody

1. Ownership

If there’s one famous phrase in crypto, it’s “Not your keys, not your coins.” The truth is, without a non-custodial wallet, you don’t truly own your assets. At best, this can mean inconveniences such as spending limits and transaction fees, but the consequences can be much more severe. For example, if a centralised wallet provider goes bankrupt or otherwise fails, you could lose access to your funds – through no fault of your own!

Then, consider the counterparty risk stemming from a centralised entity that uses bank reserves. Even in crypto, some projects rely on bank reserves; fiat-backed stablecoins are a good example. To put it simply, using a non-custodial wallet for a coin doesn’t help if the centralised issuer relies on banks and traditional financial institutions.

2. More Wallet Options 

When you use a custodial wallet, you will likely be limited to a wallet interface on a browser or mobile app. Conversely, when you self-custody your crypto, you have countless wallet options to choose from.

To clarify, almost all non-custodial wallets today benefit from BIP-32 and BIP-39 compatibility. Thanks to this standardisation, a single 12-24-word seed phrase can recover a nearly infinite number of blockchain addresses. Moreover, you can switch between non-custodial wallet providers by importing your wallet using those 12-24 words. Unlike custodial wallets, you’re free to move from provider to provider as you wish. Even if the wallet provider you use goes out of business, you can easily import your accounts into another non-custodial wallet’s interface. That’s true ownership!

3. Enhanced Privacy 

Privacy is a major concern within crypto, given the nature of blockchains as public ledgers. Many crypto users prefer to keep their public wallet addresses completely anonymous to maintain their privacy. This is only fully possible with a self-custody wallet. Additionally, this method enhances privacy since you remain in control of your information and do not have to disclose details to intermediaries that could compromise confidentiality.

Custodial wallets require you to undergo a full Know Your Customer (KYC) process, which involves providing personal information like your name, address, and even a form of photo identification. While this information might not be linked to any public wallet address, you are trusting the wallet provider to keep it safe from potential data leaks or attackers.

4. Access to the Decentralized Ecosystem

On smart contract-compatible chains, such as Ethereum and Solana, you’re likely to access blockchain apps and services. Blockchain apps and dApps, like decentralised exchanges, DeFi protocols, NFT marketplaces, and governance platforms, are only compatible with a limited number of wallets. Usually, the accepted wallet providers are non-custodial. While some platforms might work with larger custodial wallet providers, your access to the full blockchain ecosystem depends on whether you use a non-custodial wallet.

5. Sovereignty

With self-custody, no one monitors or limits your transactions, allowing you complete autonomy over your assets. This level of control is unprecedented in traditional financial systems, where institutions often impose restrictions and fees. No third parties can interfere with your transactions or access your funds without your consent. You can execute trades and transfers instantly, capitalising on market opportunities as they arise without waiting for bank approvals or facing unnecessary delays. When you use a self-custodial wallet, you only need to trust yourself, avoiding third-party services. Compared to custodial wallets, this approach carries minimal risk. For example, if an exchange or custodial platform is compromised, you risk losing access to your assets.

6. Protection from hacks

Centralised exchanges are frequent targets for cybercriminals. If a platform is compromised, your funds may be jeopardised. Key Control – when you have access to the key that manages your assets, they become protected from hacks.

In the current digital environment, it is vital to secure your assets, particularly when trading on centralised exchanges. These platforms attract hackers due to the large sums of money they manage. If a security breach happens, the results can be severe—your hard-earned funds could disappear in an instant. This situation highlights the necessity of knowing how to effectively safeguard your investments.

A key element in protecting your assets is key control. By keeping hold of the key that regulates your digital currency, you greatly diminish the likelihood of being targeted by hackers. Ensuring this key stays within your possession and not entrusted to third-party exchanges provides a protective barrier for your assets against possible breaches. In an age where cyber threats are constantly looming, taking such proactive steps is not merely prudent; it’s crucial for anyone committed to securing their financial future in the cryptocurrency realm.

7. Freedom

Transfer and receive money without needing approval from third parties. The ability to manage your accounts on your own is crucial in the fast-evolving financial environment of today. Self-custody enables you to take advantage of the key benefits offered by cryptographic technologies, including resistance to censorship and decentralisation. Proof-of-Work (PoW) networks such as Bitcoin, Dogecoin, Kaspa, and Monero are fundamentally resistant to censorship and decentralised, lacking a CEO at the helm of the network, in contrast to Proof-of-Stake (PoS) cryptocurrency networks. Conversely, PoS networks like Ethereum, Ripple XRP, Solana, Sui, and Cardano operate as companies that could potentially be forced to shut down if law enforcement agencies require it since PoS is inherently centralised.

8. No Frozen Accounts

If your account is locked or frozen by an exchange, you lose access – often without prior notice. Self-custody provides you with control around the clock. This ensures that no matter what external factors or decisions third parties make, your funds remain safe and accessible at all times. Self-custody mitigates the risk of unforeseen issues like identity verification problems or abrupt policy changes that could result in account freezes. By managing your assets yourself, you remove dependence on exchanges that might impose arbitrary restrictions or delays in accessing your funds. As the environment continues to change, embracing a self-custodial strategy positions you advantageously for both current stability and future growth.

Are all cryptocurrency wallets self-custodial?

The answer to this important question is a resounding no. In fact, many individuals may not realise that centralised cryptocurrency exchanges – such as Coinbase, Binance, and several others – offer custodial cryptocurrency wallets, often referred to as ‘web wallets.’ While these exchanges serve a vital role in the ecosystem by facilitating the buying, selling, and trading of various crypto assets, it is crucial to understand the implications of using them.

When you utilise a custodial wallet provided by one of these exchanges, your cryptocurrencies are held in trust by the exchange itself. This means that you do not have full control over your private keys – the secure codes that grant access to your funds. Instead, the exchange manages these keys on your behalf.

Consequently, while centralised exchanges provide convenience and user-friendly interfaces for trading activities, they also introduce potential risks related to security and ownership. For instance, if an exchange were to experience a security breach or insolvency issue, your assets could be jeopardised.

In contrast, self-custodial wallets empower users with complete control over their digital assets. With these wallets – often referred to as non-custodial wallets – you can also buy, sell, and trade cryptocurrencies directly without having to rely on an intermediary. 

What are the risks associated with custodial cryptocurrency wallets?

The risks are comparable to, and often exceed, those linked to keeping your money in a bank or using a payment application such as PayPal. These risks arise from the essential truth that you do not have complete control over your funds when utilising a custodial wallet or account.

Firstly, there is a risk that the exchange/platform may go bankrupt. In such an event, it is very unlikely that you will be able to recover the cryptocurrency you had stored on the exchange/platform. If you do receive any compensation, the recovery process could take years, and ultimately, you may only receive a small portion of what your assets are actually worth.

Secondly, as managing financial assets is a regulated activity, centralized cryptocurrency exchanges must adhere to the regulations of their respective jurisdictions. Given that cryptocurrency regulations are constantly changing in many areas, there is always a chance that you might find yourself unable to access your cryptoassets unexpectedly.

Additionally, exchanges might impose additional fees for withdrawals (which is quite common), delay your withdrawal process (also common), or even prevent withdrawals altogether (though this is rare).

Lastly, the risk of hacking at centralized exchanges/platforms, If such an incident occurs and considering that most cryptocurrency exchanges lack insurance and are often based offshore, it’s probable that you will lose your cryptoassets with no means of recourse.

The Myth on setting up a self-custodial wallet?

Myth #1: “It’s Complicated”

Myth #2: “It’s Just for the Nerds”

Myth #3: “If I lose my phone or computer, I lose everything.”

Myth #4: “Self-custody is risky — I’d rather trust an exchange.”

Myth #5: “Self-custody is for big investors — not for me.”

Myth #6: “I’ll wait until it’s easier.”

The real challenge is personal responsibility – losing your seed phrase, falling for scams, or poor key management can lead to permanent loss. But with basic precautions, self-custody is empowering and accessible to almost anyone.

Are there any other reasons to use a self-custodial wallet?

Self-custodial crypto wallets provide direct access to public blockchains. They allow you to customise the fees you pay to public blockchain miners and validators. This means, for example, you can choose to pay less for transactions when you’re not in a hurry, or more if you’re in a rush. Finally, because self-custodial wallets provide direct access to blockchains, they also enable interaction with smart contracts. This means you can access decentralised finance products that let you earn passive income and borrow cryptocurrency using your holdings as collateral.

Five (5) Best Methods To Set up the secured Self-Custody Wallet:

1. Utilizing 12/24 Seed or Recovery Phrase along with a Passphrase (the 25th word) 

The most common or legacy way to establish a self-custody wallet involves using a seed phrase of 12 or 24 words (also known as a recovery phrase) along with an additional passphrase, often termed the 25th word. It is crucial to write down the seed phrase precisely in the correct sequence, as it forms the basis for recovering the wallet and accessing its assets. To bolster security, users can devise a unique passphrase (the 25th word) that provides an extra layer of protection; without this, the seed phrase alone does not suffice to access the funds. This passphrase should never be documented alongside the seed phrase and is best kept memorised and completely confidential. Even if someone acquires the 12 or 24 words, they will be unable to access the wallet without knowing the correct 25th word. This arrangement is widely acknowledged within the crypto community as a robust form of self-custody, granting both control and enhanced resistance against unauthorised access. My favourite hardware wallets are Tangem, Trezor, Keystone, and Ledger.

2. Utilizing physical device and password

This is a newer, innovative method to create a self-custody wallet. Utilising a physical device along with a password is an excellent self-custody strategy, particularly for novices, as it removes the necessity to directly handle or even view a seed phrase or recovery phrase, which are frequent targets for fraudsters and hackers. A prime example of this method is Tangem, which has launched a secure solution allowing users to manage their cryptocurrency via physical cards (such as two or three smartcards) and a password – completely replacing the conventional seed phrase system. You can think of it as possessing a unique physical key and password to access a secure vault. As long as you retain at least one of the cards and remember your password, you can reach your funds. However, this arrangement demands careful responsibility: misplacing all of the physical cards results in permanently losing access to your wallet and assets since there is no backup seed phrase available for recovery. This approach provides simplicity and robust protection against digital theft, making it perfect for those seeking security without the intricacies of managing recovery phrases.

3. Multi-signature Self-Custody wallet

A multi-signature self-custody wallet is a type of cryptocurrency wallet that enhances security by requiring multiple private keys to authorize a transaction, rather than relying on just one. This setup allows users to split control of their crypto assets across different devices, individuals, or even locations. For example, a 2-of-3 multi-signature wallet means that two out of three authorized signatures are needed to move funds. This significantly reduces the risk of theft or loss, as no single compromised key can drain the wallet. In self-custody, the user retains full ownership and responsibility over their keys – there’s no third-party custodian. By combining self-custody with multi-signature technology, users gain stronger protection against hacking, accidental loss, and internal fraud. It’s a popular solution among businesses, DAOs, and security-conscious individuals who want more control and resilience in managing their digital assets. The seed phrases should be set up the same way.

4. Utilizing username and password 

Self-custody through username and password, refers to a simplified form of managing digital assets where access is controlled by login credentials, rather than traditional private keys. This method is often used by custodial-like platforms offering “keyless” self-custody solutions. While it gives users direct access to their funds without relying on a third-party custodian, the security heavily depends on the strength and protection of the username and password. If these credentials are compromised, lost, or stolen, access to the wallet could be at risk – unless additional security layers like two-factor authentication (2FA) or biometric verification are in place. Although more user-friendly than managing complex private keys, this method of self-custody still requires users to take personal responsibility for their login security, and it’s generally less robust than key-based or multi-signature systems. A great example of the apps: Zelcore or Edge wallet.

5. Utilizing 12/24 phrase without passphrase (hot wallet apps and physical devices)  

Setting up self-custody using only a 12 or 24 word recovery phrase without an added passphrase – whether through a mobile hot wallet app or a physical hardware wallet, is considered the weakest form of self-custody. The recovery phrase (also known as a seed phrase) is the single point of access to the wallet and all its assets. If someone gains access to this phrase, they can fully control the wallet without any additional verification. When no passphrase or second layer of protection is added, the wallet is highly vulnerable to theft, phishing, and physical compromise, especially if the phrase is stored digitally or written down insecurely. While this method gives users full ownership of their funds, it lacks the layered security of multi-signature setups or keyless authentication, making it a risky choice for long-term or high-value storage. All crypto hot wallets and hardware wallets.

Getting Started with Self-Custody – Security Tips

Here are advanced tips to help keep your cryptocurrency safe, beyond the basics like using strong passwords and enabling 2FA. Whether you’re interested in airdrops, decentralised finance (DeFi), and NFTs, or simply want to invest, it is advisable to create a dedicated self-custody wallet for each purpose, based on the tips below. The reason for this is that smart contracts might be exploited, and you could lose all your funds. Therefore, separating self-custody wallets is mandatory unless you plan to invest exclusively. Four (4) common purposes for self-custody wallets are as follows:

1. Self-Custody Wallet for Long-Term Investment:

This is a basic wallet designed solely for sending and receiving funds or assets. It will not connect to the internet, making it ideal for holding assets that gain value over the long term, such as $USDT on the Tron network, $KAS, $XMR, and $BTC. The best hardware wallets for this purpose are Tangem, Trezor, and Keystone.

2. Self-Custody wallet for DeFi:

Just for interacting with decentralised apps or NFTs, such as for lending and borrowing, the best hardware wallet is Trezor, which can be connected with Rabby Wallet, Zerion Wallet, Ctrl Wallet, or Phantom Wallet. Visit Defillama to compare the most used dapps.

3. Self-Custody wallet for Airdrops hunting:

Airdrop hunting is for individuals who like to experiment with new projects for potential future rewards. The best hardware wallet for this is Ledger, which can be connected with Rabby Wallet, Zerion Wallet, Ctrl Wallet, Phantom Wallet, or Metamask using security extensions.

4. Self-Custody wallet for traveling:

This is ideal for travel purposes, where individuals may need to spend crypto while on the move. I doubt anyone would want to carry a hardware wallet with a large amount of funds in their pocket. The best hardware wallet for this purpose is Tangem, which allows you to spend stablecoins easily while traveling.

Self-Custody Wallet for Long-Term Investment and Traveling purposes:

🔐 1. Use a Hardware Wallet

• Store your long-term crypto holdings in a hardware wallet like Ledger or Trezor.
• These wallets keep your private keys offline, making them immune to online hacks.

🧱 2. Never Share Your Seed Phrase

• Do not store your seed phrase digitally (screenshots, cloud, email, etc.).
• Write it on paper or engrave it on metal and store it somewhere safe (e.g., a fireproof safe).

🌐 3. Beware of Phishing Sites & Emails

• Always double-check URLs. Bookmark the official sites of wallets and exchanges.
• Never click on links in unsolicited emails or DMs claiming to be from support.

🛠️ 4. Use Cold Storage for Large Amounts

• Keep only small amounts of crypto in hot wallets (connected to the internet).
• Store the bulk of your holdings in cold storage (offline wallets).

🧪 5. Test Transactions

• When sending crypto to a new address, first send a small test amount to ensure it goes through correctly.

🔎 6. Check Smart Contracts Before Connecting Your Wallet

• When using DeFi apps, verify the legitimacy of the smart contract and the dApp.
• Avoid signing random messages or granting unlimited permissions (infinite approvals).

⚠️ 7. Revoke Unused Approvals

• Go to Revoke.cash or similar tools to check and remove old token approvals from your wallet.

🔐 8. Use a Separate Wallet for NFTs or DApps

• Create a dedicated wallet just for interacting with decentralized apps or NFTs.
• This protects your main holdings if the DApp turns out to be malicious.

🧭 9. Stay Updated on Scams

• Follow trusted crypto security experts on Twitter/X or Reddit.
• Join crypto communities (Discord, Telegram) with strong moderation and vetting.

📵 10. Avoid Using Public Wi-Fi

• Don’t access your wallets or exchange accounts on public networks without a VPN.
• Better yet, avoid logging in at all when using public internet.

Self-Custody wallet for Airdrops hunting and DeFi:

🎯 1. Research Before You Claim

• Verify the project: Check if the airdrop is announced on official channels (e.g., project’s website, Twitter, Discord).
• Avoid claiming airdrops from random DMs or spammy sites.

🔗 2. Use a Separate Wallet for Airdrops

• Create a dedicated wallet just for claiming airdrops.
• This isolates your main funds from potential malicious contracts.

❌ 3. Be Wary of Airdrops That Require Token Approval or Signing

• If claiming an airdrop requires:
  
  
  • Unlimited token approval
  • Signing odd transactions or messages
    → Do not proceed unless you’re sure it’s safe.

🪝 4. Watch Out for “Dusting Attacks”

• Sometimes you’ll see airdropped tokens in your wallet you didn’t ask for.
  → Don’t interact with them!
  
  
  • They may be part of a phishing or tracking attempt.
  • Simply hide the token in your wallet interface (don’t sell or swap it).

📉 5. Beware of Fake Tokens on DEXs

• Scammers often launch fake tokens that look like the real ones.
• If you plan to trade an airdropped token, double-check the token contract address using official sources like:
  
  
  • CoinGecko / CoinMarketCap
  • The project’s website or social profiles

🧹 6. Revoke Token Approvals After Claiming

• If you had to grant any permissions to claim the airdrop, use Revoke.cash or Etherscan Token Approvals to revoke them afterward.

🚩 7. Don’t Pay to Receive an Airdrop

• Legit airdrops never ask for upfront payments (especially in ETH, BNB, etc.).
• Any project asking you to “unlock” or “verify” an airdrop with payment is a scam.

💬 8. Avoid Connecting Wallets on Unknown Sites

• Even if a project sounds exciting, always verify the website is authentic before connecting your wallet.
• Use tools like Whois Lookup to check domain registration age if in doubt.

🧠 9. Don’t Rush

• Airdrop scams often use urgency tactics: “Claim in 10 minutes or lose your tokens!”
• Take your time to verify everything—even if it means missing out. Better safe than hacked.

🛑 10. Use a Web3 Wallet with Built-In Security Warnings

• Some wallets (like Rabby or MetaMask with extensions) warn you about malicious contracts or spoofed domains.

✅ Self-Custody Wallet Security Checklist

🔐 1. Seed Phrase / Recovery Phrase

• ☐ The The hardware wallet will generate a Seed Phrase/Recovery Phrase. Write it down on paper (or metal later) and store it offline in a secure place, such as a safe or lockbox. Enable a Passphrase, also known as the 25th word, which should not be written down; it can be a name to help you remember it easily.
• ☐ NEVER store it digitally (e.g., not in Google Drive, iCloud, email, or notes app).
• ☐ Do not share it with anyone, ever — no legit service will ever ask for it.
• ☐ Do not lose all the physical keys. Tangem uses three cards or two cards plus a ring as physical keys. This physical key combined with a password equals the Seed Phrase/Recovery Phrase. Do not store them in the same location. You cannot duplicate the keys, you will need to obtain a new set if you have lost the other keys.

🧠 2. Understand What You Control

• ☐ Know that you are the bank — if you lose your seed phrase and access, there is no customer support to recover your funds.
• ☐ Understand that each wallet address has only one recovery phrase — it’s your master key.

📱 3. Device Security

• ☐ Use a hardware wallet (e.g., Trezor, Keystone, Ledger, Tangem) for larger amounts or long-term holding.
• ☐ Keep software wallets (e.g., Rabby, Zerion, Ctrl wallet, TronLink, Kepler, Backpack, Phantom, MetaMask, Trust Wallet) on secure devices only.
• ☐ Install antivirus software and avoid using wallets on public or shared computers.
• ☐ Keep firmware and apps up to date.

🧑‍💻 4. Phishing & Scam Protection

• ☐ Always verify URLs before connecting your wallet (use bookmarks for DeFi/NFT sites). Do not Google the crypto website; instead, access it directly through their verified account on X.com, formerly known as Twitter.
• ☐ Be cautious of fake airdrops, fake wallet apps, and “support” accounts on social media.
• ☐ Never sign a transaction if you don’t fully understand it — read it carefully.
• ☐ Use different Self-Custody wallet for DeFi/NFTs/Gaming/Social for on-chain signing of transaction, the other Self-Custody wallet need NOT to conned to any website, It will be used to send and receive only. 

🧳 5. Backup Plan

• ☐ Tell a trusted person how to access your recovery phrase in case of emergency (e.g., death, incapacity).
• ☐ Consider using multisig wallets (like Gnosis Safe) or services like Casa for more robust key management.

🧪 6. Practice First

• ☐ Test with small amounts before sending large sums.
• ☐ Practice recovering your wallet using your seed phrase on a second device (optional, but useful). Restarting the recovery process, will provide users with surety that they can recover their funds. With Tangem you will need one physical card to access your funds, if you lost two (2) keys and you left with one (1) key then you will need to transfer your funds to another set of Tangem keys.
• ☐ Write it down 12 or 24 words on metal plate and store it on a locked safe, please do not write the 25th word on metal plate, but rather on your mind. StampSeed is a titanium-backed metal stamping kit designed to embed your cryptocurrency wallet’s seed words permanently and safely into a durable metal plate.

Final Thoughts

In conclusion, while the journey to mastering self-custody may demand a significant investment of time and effort from beginners, the rewards are undeniably worthwhile. By adopting self-custody practices, individuals can achieve enhanced security and autonomy over their financial futures. This approach not only protects digital assets but also fosters a deeper connection with the fundamental principles of cryptocurrencies. Ultimately, taking control transcends mere safeguarding; it embodies empowerment and instills confidence in navigating the evolving crypto landscape. Embrace this opportunity to secure your financial independence and engage fully with the transformative potential of digital currencies.

Now that you grasp the method for setting up a self-custody wallet and managing your crypto hardware wallet, it’s crucial to adhere strictly to best practices. Understand the do’s and don’ts, recognise the significance of a passphrase, and ensure it is kept separate from your 24 seed phrases for optimal security. The final step is straightforward: purchase the physical hardware. Refer to my selection of Best Hardware Wallets for Crypto Security specifically chosen for you.