What is Self-Custody? Crypto Custody Explained:
The blockchain can be thought of like a bank for everyone.
Usually when people own assets like US dollars or stocks, they are held by a custodian such as a traditional bank.
Digital assets like Bitcoin aren’t stored with a custodian. Instead, Bitcoin is stored on the blockchain in a sort of “digital vault”.
You can only access and move assets in this digital vault if you have a secret private key that is associated with the vault.
Since only you, the keyholder, have access, this is called Self-Custody.
Self-custody is unique because assets aren’t held by a third party - increasing efficiency while reducing fraud.
Typically, keeping assets with a third party is a requirement to participate in today’s economy.
Self-custody enables individuals who may not have access to the traditional financial system, like the unbanked, to be connected in an open, global economy with just a smartphone and the internet.
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To learn more about all these Cryptos, visit the Cryptopedia at Ethos.io
