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JustinDavidson

How can I compare crypto custody models?

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I’m comparing different crypto platforms and noticed that they don’t all handle customer assets in the same way. What should I look at to understand whether a platform uses custodial, self-custody, or another type of arrangement?

 

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A useful starting point is https://blockonomi.com/custody-four-questions-to-settle-before-you-fund-an-account/. It highlights several practical custody questions, including who controls the assets, how withdrawals are handled, and what happens if the platform experiences operational or financial problems. I’d go through these points before depositing funds so you have a clearer understanding of how the custody model works and what responsibilities remain with you.

 

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