Self-Custody Finance

Definition ∞ Self-Custody Finance is a financial model where individuals retain direct and sole control over their digital assets, managing their private keys without relying on third-party custodians or intermediaries. This approach prioritizes individual sovereignty and reduces counterparty risk inherent in centralized systems. It represents a core tenet of decentralized finance.
Context ∞ The concept of self-custody finance is a defining feature of the cryptocurrency movement, offering users complete control over their funds. Debates frequently involve the trade-offs between the security benefits of self-custody and the technical responsibilities it places on individual users.