Definition
Self-custody is an asset-control model, not a particular wallet brand or device. A person or organization maintains the authority required to approve transfers rather than delegating that authority to a custodian. The model can use a single key, hardware protection, multisignature rules or other arrangements. What matters is the actual control structure and its recovery process.
How It Works
The owner creates or receives assets at accounts governed by their authorization method. Transactions are signed or approved under that method and then validated by the network. Using third-party software, a node provider or an interface does not automatically give those suppliers custody. However, dependencies can still affect availability, privacy and the information shown before a user approves an action.
Key Considerations
With control comes responsibility for backup, operational security and continuity if a device fails or an authorized person becomes unavailable. A recovery plan should match the exact wallet design and avoid one easily lost or copied secret becoming an unexamined failure point. Self-custody does not make every token permissionless, guarantee transaction reversal or remove smart-contract risk. Assess asset-level controls and permissions separately. Never assume that a local password or biometric alone is enough to reconstruct the wallet after losing all devices.