Module 1 · Foundation
Custody & private keys
Not your keys, not your coins — what that actually means.
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Keys vs. custody
Learn
A crypto wallet doesn't *hold* coins — it holds the private key that authorizes moving them on-chain. "Not your keys, not your coins" means: if a third party controls the key (an exchange), they control your asset, and your balance is really just an IOU.
Self-custody removes that counterparty risk but moves the entire burden of key security onto you. There is no password reset.
Exchange custody
- Who holds keys
- The exchange
- Counterparty risk
- Yes (FTX-style)
- Recovery
- Support / KYC
- Best for
- Active trading
Self-custody
- Who holds keys
- You
- Counterparty risk
- None
- Recovery
- Seed phrase only
- Best for
- Holding / sovereignty
Recall0/1
Recall
"Not your keys, not your coins" means…
Seed phrases & backups
Learn
Your seed phrase IS your wallet. Anyone who reads it can drain you; if you lose it with no backup, the funds are gone forever. Never type it into a website, never photograph it, never store it in cloud notes.
Recall0/1
Recall
Where should you NEVER store a seed phrase?