Self-custody means you hold your own private keys and have direct control over your funds. No bank, exchange, or third party can freeze, seize, or lose your money. With self-custody, you eliminate counterparty risk entirely.
The Golden Rule
"Not Your Keys, Not Your Coins"
When you store money in a bank or on an exchange, you're trusting that institution to safeguard and return your funds. With self-custody, your wallet, your keys, your money.
Custodial vs Self-Custody
Custodial (Traditional)
Third party holds your keys
Banks, exchanges, and payment processors control access to your funds
Can freeze your account
Institutions can lock you out without warning or explanation
Subject to insolvency
If the company fails, your funds may be lost (e.g., FTX, SVB)
Limited access hours
Banks close on weekends, holidays, and may have withdrawal limits
Examples: Banks, PayPal, Venmo, Coinbase, Binance (exchange wallets)
Self-Custody (Moneta)
You hold your own keys
Only you can authorize transactions from your wallet
Cannot be frozen
No one can lock you out of your own wallet
No counterparty risk
Your funds exist on the blockchain, not on any company's balance sheet
24/7 access worldwide
Access your funds anytime, anywhere, with no limits
Examples: MetaMask, Ledger, Trezor, Phantom, Moneta
How Self-Custody Works
Generate a Wallet
When you create a self-custody wallet, your device generates a unique pair of cryptographic keys:
- Private Key: A secret code that proves ownership and authorizes transactions. Never share this.
- Public Key: Your wallet address that others use to send you funds. Safe to share.
Backup Your Recovery Phrase
Your wallet generates a 12 or 24-word recovery phrase (also called a seed phrase). This phrase can regenerate your private key if you lose access to your device.
Critical: Write down your recovery phrase on paper and store it securely offline. Never store it digitally or share it with anyone. Anyone with this phrase has full access to your funds.
Sign Transactions
When you want to send funds, your wallet uses your private key to create a digital signature. This signature proves you authorized the transaction without revealing your private key.
Blockchain Verification
The blockchain network verifies your signature and records the transaction permanently. No central authority is involved—the network itself ensures security and finality.
Types of Self-Custody Wallets
| Type | Security | Convenience | Best For |
|---|---|---|---|
Hardware Wallet Ledger, Trezor | Highest | Lower | Long-term storage, large amounts |
Browser Extension MetaMask, Phantom | Medium | High | Daily transactions, DeFi |
Mobile Wallet Trust Wallet, Rainbow | Medium | Highest | On-the-go payments, everyday use |
Smart Wallet Safe, Privy (Moneta) | High | High | Business use, social recovery |
How Moneta Implements Self-Custody
Moneta is fully decentralized and non-custodial. Your funds go directly to your wallet, which only you control. Moneta cannot freeze, hold, or seize your money.
Direct Settlement
When customers pay, funds go directly to your wallet—not to Moneta. We never touch or hold your money at any point.
Your Wallet, Your Choice
Connect any self-custody wallet you prefer—MetaMask, Ledger, or use our built-in smart wallet with social recovery.
No Account Freezing
Unlike PayPal or banks, Moneta has no ability to freeze your account or withhold your funds. The blockchain doesn't have a "freeze" button.
Full Transparency
All transactions are recorded on the public blockchain. You can verify every payment independently without trusting any third party.
Self-Custody Best Practices
Write down your recovery phrase on paper
Store in a secure location like a safe. Consider multiple copies in different locations.
Never share your private key or recovery phrase
No legitimate service will ever ask for these. Anyone who does is trying to steal your funds.
Use a hardware wallet for large amounts
Keep day-to-day funds in a hot wallet, but store savings on a hardware device.
Verify addresses before sending
Blockchain transactions are irreversible. Always double-check the recipient address.
Keep your software updated
Wallet updates often include security patches. Stay current to stay protected.
Ready to Take Control?
Start accepting payments directly to your self-custody wallet. Zero fees, instant settlement, complete control.