📝 Definition:
Self-custody means you hold and control your own cryptocurrency without depending on someone else.
You manage your own private keys, which are like secret passwords that give you access to your crypto.
🔑 Key Features:
- Full Control: You have complete control over your crypto assets.
- Private Keys: You manage your private keys, keeping them safe.
- No Middleman: No one else is involved in holding or managing your crypto.
- Security: Requires good habits to protect your keys from loss or theft.
⚙️ How It Works:
- Generate Wallet: Create a crypto wallet that gives you access to your private keys.
- Store Keys Securely: Keep your private keys safe, using hardware wallets or other secure ways.
- Manage Transactions: Use your keys to approve transactions directly.
- Backup: Have a safe backup of your keys to recover your wallet if needed.
💡 Applications:
- Individual Control: Ideal for those who want full control over their crypto without depending on exchanges.
- Enhanced Security: Provides higher security by avoiding risks from others.
- Privacy: Keeps your transactions private since no one else has access to your funds.
🔍 Example:
Imagine you have a safe where you keep your important things. You hold the keys, and only you can access it.
In the crypto world, self-custody means you control the keys to your digital safe.
This way, you are the only one who have access to your crypto.