Definition ∞ Cryptocurrency custody involves the secure storage and management of digital assets. This practice addresses the need to protect private keys that control access to cryptocurrencies, preventing unauthorized transactions or loss. Custody solutions range from self-custody, where individuals retain full control of their keys, to third-party custody providers, which offer institutional-grade security and compliance services. Secure custody is paramount for both individual holders and large financial entities managing substantial digital asset portfolios.
Context ∞ News often discusses cryptocurrency custody in relation to security breaches, regulatory requirements, and the increasing institutional participation in the digital asset market. The development of robust custody solutions is a critical factor for mainstream adoption, as it mitigates risks associated with hacking and theft. Debates persist regarding the trade-offs between self-custody’s autonomy and the professional security assurances offered by specialized custodians.
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