CoinDesk Article Examines Hidden Costs of Self-Custody Bitcoin for Advisors

WHY IT MATTERS

When you own bitcoin, you have a choice: let a company hold it for you (like a bank holds your money) or hold it yourself using what is called "self-custody." Self-custody means you control your own private keys — think of these as a unique password that proves the bitcoin is yours. While this gives you full control, it also means you are fully responsible for keeping those keys safe. If you lose them, there is no customer service to call. This article highlights that self-custody can involve costs beyond just security risks, such as the time needed to learn how it works, potential legal complications, and challenges around passing assets to heirs. For financial advisors, understanding these trade-offs helps them give more informed guidance to clients interested in crypto.