Custodial accounts
With a custodial service, a company controls the keys and maintains the customer-facing account. This can make access simpler, but it introduces dependence on the custodian’s security, solvency and withdrawal policies.
If the custodian fails or freezes access, the user may not have direct control over the underlying assets.
Self-custody
Self-custody gives the holder direct control of the keys. It also transfers responsibility for keeping those credentials secure and recoverable.
Loss of the relevant credentials can make assets permanently inaccessible, and blockchain transactions are generally difficult or impossible to reverse.
What to compare
Custody research should look at who controls the keys, how assets are separated from company funds, withdrawal rules, security controls and the legal terms governing customer assets.
Convenience and control usually involve a trade-off rather than a universally better model.
General information only. Investment products can lose value, and terms, fees and regulation can change.