Crypto Custody Explained: How to Keep Your Crypto Safe
Custody is the most critical concept in crypto. Whether you use an exchange or your own wallet, here is what custody means and which option suits you.
"Not your keys, not your coins." This summarises the most important principle in crypto. Custody means control of the private keys that authorise transactions from a wallet. When FTX collapsed in 2022, customers who had Bitcoin on FTX lost everything. Customers who held self-custodially were unaffected.
Custodial vs Non-Custodial
- Custodial (exchange wallets): exchange holds keys, you have account access — like a bank
- Non-custodial (self-hosted): you hold private keys — like owning physical cash
- Semi-custodial (MPC wallets): keys split between you and provider — middle ground
- Custodial risk: exchange hack, insolvency, regulatory action, account freeze
Choosing the Right Custody Model
- Under £1,000: custodial exchange is acceptable — convenience outweighs risk
- £1,000–10,000: mixed — move a portion to self-custodial wallet
- £10,000+: majority in self-custodial wallet or hardware wallet
- Long-term holding: always self-custodial — no reason to keep idle funds on exchange
Steyble: Self-Custodial Without Compromise
Steyble provides full self-custodial security alongside the convenience of an exchange — swap, stake, trade, and spend without ever handing your keys to a third party. Your keys, your crypto, your rules — with every feature you need in one app.