3 · CustodyLesson 17 min

Exchange balance or Bitcoin wallet?

Understand the custody decision before moving funds.

By the end, you should be able to:

  • Define custodial balance
  • Define self-custody
  • Match operational responsibility to experience

A custodial platform controls the keys and records your claim in its internal system. You rely on the platform's solvency, controls, withdrawal policies, and account access.

In self-custody, your wallet controls the keys needed to spend the bitcoin. This removes some platform dependence but creates direct responsibility for backups, malware resistance, inheritance, and transaction accuracy.

The decision is not a morality test. Choose a structure whose failure modes you understand, then reduce concentration and complexity as your knowledge improves.

Action checklist

I know who controls the keys
I understand the main failure mode of my chosen custody
I have not moved funds before creating a backup plan

Go deeper

Knowledge check

What changes in self-custody?

Completion is stored locally in this browser and is not a credential or investment qualification.