Self-custody means a user controls the signing authority or account policy rather than relying entirely on an intermediary to approve withdrawals. Wallet software helps the user inspect balances, build transactions, and sign them. The assets remain represented in the blockchain's state. Different designs can share control through multisignature, recovery guardians, or delegated permissions, so custody is sometimes a spectrum of authorities rather than a simple label attached to an application's interface.

Holding a token in a self-controlled account does not necessarily remove an issuer's or contract administrator's powers. Circle's stablecoin source repository, for example, documents privileged roles and controls such as pausing and blocklisting. Those controls are separate from possession of a user's private key. A self-custody definition therefore should not promise that no asset can ever be frozen or that legal and protocol restrictions stop applying when a user leaves an exchange.

The user needs a workable backup and recovery plan, protection against phishing, and an understanding of signed permissions. Losing keys or authorizing unsafe code can cause losses even if the chain operates correctly. A small test transfer can check an address and network path but does not validate every future contract interaction. Describe the actual authorization model, asset controls, and recovery requirements so that independence from an exchange is not mistaken for independence from every technical or legal dependency.