Self-custody refers to holding and managing your own cryptocurrency, where you control the private keys without relying on third parties like wallet providers or exchanges.
Cold storage, a form of self-custody, involves keeping your cryptocurrency in an offline device, like a hardware wallet, for added security.
There are also self-custody hot wallets, where you control the keys, but they are stored on internet-connected devices.
In some cases, these keys are stored on the wallet provider's servers, and even if encrypted, they become exposed when accessed, increasing the risk of hacking or phishing.
