Self-Custody Ownership of your digital assets

Self-custody implies that you are the sole controller of your digital assets because you own the private keys. Since no third party is involved, you have the responsibility to safeguard your assets and have access to these assets at your fingertips 24 hours and 365 days a year.

Self-Custody is one of the strongest pillars of Crypto, as it empowers you to take charge and become your gatekeeper. It might sound overwhelming but keep reading, and you will explore how and why Self-Custody can prove beneficial, and is the need of the hour. 

What is Self-Custody?

Self-Custody is about maintaining a secure access to your crypto assets. Having a Self-Custody wallet means that your keys are with you and not with a third-party platform. Also, no one, not even the wallet provider, will have access to your wallet’s private keys. However, when you carry your keys with you, you also carry the responsibility of safeguarding them.

Why opt for Self-Custody?

To protect your digital assets from exposure to theft, hack and other incidences in the ecosystem, self-custody is one of the most alluring and liberating features of cryptocurrency. It enables users to act as their safe and eliminates dependency on financial organizations that have the authority to immediately freeze or seize account withdrawals. It gives you the power to overcome the obstacles of having intermediaries.

How does Liminal simplify Self-Custody?

Liminal uses a hybrid technique of HSM and MPC to balance security and ease, as the most crucial part of self-custody is the safekeeping of your private keys. With Liminal, your keys, your funds, and the storage are always under your control with enterprise-grade features. No exceptions! 

Liminal also provides additional security measures through its policies like whitelisting the addresses, spending limits, transaction limits, etc. Also, for all supported chains, wallet creation, transaction initiation, transaction signing, and policy setting are done through a simple UI. 

Why choose Liminal?

 A comprehensive platform that covers every aspect of a self-custody wallet. 

  • Hardware device support with Trezor and Ledger
  • CCSS compliant 
  • Easy-to-use interface
  • Premium support to assist
  • Multiple blockchains under the same interface
  • Insurance
  • DeFi support
  • Wallet key cards to ensure wallet recovery if something happens to Liminal
  • Wallet recovery training 
  • SMS, Email and Slack notifications for transactions
  • Easy to setup and transact 
  • Multi-Signature and MPC wallet configurations 

Faq

How does a self-custody wallet work?

Self-custody wallet essentially holds private keys which help represent ownership of the digital assets. Plus, the self-custody cryptocurrency wallet is entirely held by the respective owner. With the self-custody wallet, the private keys are employed to sign transactions, whereas public keys help send funds to the appropriate address.

What are the pros and cons of a custodial account?

With a custodial account, the biggest downside is that users and investors are required to trust their funds and private keys to a third party. While setting up the custodial account, the user is required to go through login procedures and agree to all the terms and conditions. With custodial wallets, you don’t have to always manage your private keys while executing transaction.

Is Ledger a self-custody wallet?

Yes, absolutely. The ledger hardware wallet is a self-custody wallet. It allows you store private keys offline. Ledger offers a wide range of hardware wallets: Ledger Stax, Ledger Nano X, and Ledger Nano S Plus – to protect your digital assets and NFTs from sophisticated hacks.

What is the difference between a blockchain and a self-custody wallet?

A blockchain is a shared, immutable digital ledger stored across multiple nodes – that constitutes an encrypted record of transactions and asset ownership. On the other hand, a self-custody wallet allows users to maintain control over their wallet’s private keys. There are other kinds of custodial wallets that store private keys on their in-house servers allowing the user to access their funds instantly. Both wallets allow you to transact over blockchain without friction.

Why is Self-custody important for crypto?

A wallet is required to transact digital assets and tokens within a decentralised crypo-finance ecosystem. Custodial wallet manages your keys for you whereas self-custody cryptocurrency wallet let you manage your keys. Self-custody wallets are critical for the crypto industry because it enables crypto investors and users to maintain complete control over their crypto investments without the interference of third-party institutions. Additionally, self-custody wallet allows users to trade with cutting-edge DeFi protocols and a diverse range of Dapps.

Can self-custody be changed?

Yes, absolutely; you can switch your wallet from self-custodian format to custodian. If you find managing funds using a self-custody wallet difficult, then you can opt for a custodian wallet. With a custodian wallet, you can easily share your public address with other parties. But, the risk of losing all your crypto-asset is significantly higher with a custodian wallet. A bug in the custodian wallet application can lead to loss of life savings.

What is self-custody staking?

With self-custody staking, users get the opportunity to receive an incentive for staking their asset token. Investors and users can stake their tokens using a self-custody cryptocurrency wallet, enabling them to earn for their crypto-holdings. But, operating as a blockchain network’s node validator and staking token using a self-custody cryptocurrency wallet is a highly technical task and time-consuming.