Custodial vs self-custody

In plain words

Custodial: a company holds the keys and owes you bitcoin. You hold a login and a promise. Self-custody: your wallet holds the keys, and the coins answer to you alone. Custody feels easy — password resets, support desks — and rests on the company staying honest, secure, and solvent. Self-custody trades comfort for ownership: no one can freeze your coins, and no one can undo your mistakes. Those are the same fact.

Why it matters

• Exchange disasters — hacks, freezes, bankruptcies — fall on custodial users.
• Self-custody is Bitcoin as designed. Custody re-installs the middleman.
• An honest answer can be "some of each" while you learn.

Not to be confused with

• Hot vs cold — that's where keys live; this is who has them.

Go deeper

• "Not your keys, not your coins"
• Seed backups
• Hot vs cold wallets