Investor self-custody refers to the practice where individuals maintain direct control over their digital asset private keys, rather than relying on a third-party custodian like an exchange. This approach grants users complete sovereignty over their funds, removing counterparty risk. However, it also places full responsibility for security and key management on the individual.
Context
The discussion around investor self-custody gains prominence during periods of exchange instability or regulatory scrutiny, as it underscores the core decentralized ethos of cryptocurrency. News frequently highlights the advantages and risks of self-custody, particularly concerning user education and the availability of secure hardware solutions.
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