Self-custody refers to the practice of individuals managing and securing their own cryptocurrency holdings instead of relying on third-party services like exchanges or wallets. This approach allows users full control over their assets, reducing the risk of loss from hacks or insolvencies associated with service providers.To self-custody, one typically uses a software or hardware wallet. Software wallets can be apps on computers or mobile devices, while hardware wallets are physical devices designed to securely store private keys offline. Users are responsible for backing up their recovery phrases and ensuring the security of their wallets.While self-custody grants greater autonomy, it also places the onus on users to protect their assets. If a user loses access to their wallet or forgets their recovery phrase, there is often no way to recover the funds.Ultimately, self-custody promotes security and privacy, but it requires vigilance and responsibility from the holder to manage their cryptocurrency safely.