Custody

Custody refers to the safekeeping and control of crypto assets or the private keys that allow those assets to be moved. In crypto, custody determines who has ultimate control and access over the funds. If a platform or custodian controls the private keys on behalf of a user, the arrangement is defined as custodial. If the user controls the private keys directly, the arrangement is defined as self-custody. Custody affects how assets are stored, how withdrawals are approved, how account recovery works, and who is responsible for protecting access to the crypto.

For example, a user who keeps Bitcoin on Ndax is relying on a custodial setup. However, a user who moves Bitcoin to a personal hardware wallet is taking self-custody of that Bitcoin.