Custody is a responsibility choice
Self-custody gives direct control over keys and transactions. It also moves operational responsibility to the user.
Exchange custody can simplify trading and recovery, but it introduces platform, account, and withdrawal risks.
Match custody to activity
Funds used for active trading may need exchange access. Long-term holdings may benefit from stronger separation, depending on the user's skill and recovery process.
A single custody model does not fit every use case. Many users separate operational balances from longer-term storage.
Recovery planning is part of security
A wallet backup that nobody can recover is not secure in practice. An exchange account with weak 2FA and exposed email is also fragile.
The decision should include device security, backups, inheritance or emergency access, and phishing resistance.
Use small tests
Before moving meaningful funds, test deposits, withdrawals, address formats, and network selection with a small amount that still meets minimum transfer rules.
The test is operational verification, not a market call.
Decision rule
Use this guide as a checklist, not as financial advice. Confirm current platform terms, local eligibility, and risk limits before opening or funding any account.
Sources
- PartnerCrypto original custody-decision guide.