Wallet (self-custody)

A self-custody wallet is a tool that lets you hold your own crypto assets directly, by controlling the private key that authorizes transactions. "Self-custody" means no company holds your assets for you - you sign transactions yourself, and no one can freeze or move your tokens without your key. This is the opposite of a custodial account at an exchange, where the exchange holds the keys and you hold a claim on them.

A wallet does not actually "store" tokens. Your assets live on the blockchain; the wallet stores the key that proves you own them and lets you authorize transfers. The same wallet can hold ETH, stablecoins, and tokenized real-world assets across compatible networks.

Wallets come in two broad kinds. A hot wallet is software - a browser extension or phone app such as MetaMask or Coinbase Wallet - that stays connected to the internet and is convenient for everyday use. A hardware wallet is a physical device that keeps the key offline and signs transactions on the device itself, which is far safer for large holdings.

Setting one up gives you a seed phrase - a list of words that can regenerate your key. Whoever has that phrase controls the wallet, so protecting it is the whole game.

For real-world assets, a self-custody wallet is often where your tokenized shares live, and its address is what an issuer approves on a whitelist. The freedom comes with full responsibility: there is no password reset and no support line that can recover a lost key. If you lose the key and the backup, the assets are gone.

Source: Ethereum docs (ethereum.org), as of 2026.