SEC Publishes Crypto Custody Guidelines for Individual Investors
๐ธ Crypto custody is how you store and access your crypto assets through a wallet.
๐ธ A crypto wallet doesn't hold the crypto itself, but its private key, the key to controlling your assets.
๐ธ Losing your private key or seed phrase means losing your crypto permanently.
๐ธ Hot wallets are convenient but riskier; cold wallets are safer but can be lost.
๐ธ Investors can self-custody or use a third party such as an exchange.
๐ธ Self-custody gives you full control but also full responsibility.
๐ธ Using a third party is more convenient, but you must trust that they will protect and not misuse your assets.
๐ธ Always keep your seed phrase secure, do not share your private key, and be wary of scams.