Custodial Exchange vs Self-Custody Wallet
Understand key control, recovery responsibility, convenience and when a withdrawal may make sense.
Custody Is Convenient but Platform-Dependent
When assets remain on an exchange, the platform controls the keys and you act through account permissions. Trading and account recovery are convenient, but you face platform, freeze, phishing and account-takeover risks.
Self-Custody Gives Control and Responsibility
With self-custody, you hold the seed phrase or keys and are not limited by an exchange account. But lost seeds, leaks and wrong transfers generally cannot be reversed by support. Learn backups and test small first.
Separate Funds by Purpose
A small trading balance can remain on a well-secured exchange, while larger long-term holdings may move to a trusted hardware wallet after you understand recovery. Do not rush to withdraw everything before learning the process.
