Crypto custody: questions to answer before moving assets

Identify who can authorize a transfer

Investor.gov’s custody bulletin explains that a crypto wallet manages access through private keys. Self custody places responsibility for those keys with the user; third party custody places key management with a provider. Internet connected and offline approaches have different operational tradeoffs. These distinctions matter more than a product’s visual design.

Write a custody map before choosing a service. Identify the asset, network, wallet or account, the party controlling authorization, and the recovery process. If several providers are involved, describe each role separately. A trading interface, a wallet developer and a custodian are not necessarily the same organization.

Practice the operational questions

For self custody, consider how you would recover after a lost device, damaged backup or unavailable password manager. Decide where instructions could be kept without exposing the secret needed to transfer assets. Never put a private key or recovery phrase into an inquiry form, discussion post or translation service.

For a third party account, inspect the legal entity and custody agreement. Ask how assets are recorded, whether they can be lent or otherwise used, and how withdrawals work. Save the relevant documents with a date. If the explanation is vague, mark the issue unresolved instead of substituting a marketing claim.

Plan an address verification routine. Use the intended network, check the destination in the receiving interface and understand all displayed charges. A small test transaction may help check an operational process, but it does not prove that the destination or provider is safe. Do not send funds to an unsolicited support agent.

Keep a recovery and review record

A private custody worksheet can list nonsecret account identifiers, official support channels, backup locations described without revealing their contents, and the last date you checked the procedure. Store sensitive recovery material separately from a general research file.

Revisit the arrangement after a software change, provider notice or change in personal circumstances. Ask whether another authorized person would understand the instructions if you were unavailable, without giving unnecessary access today. Crypto custody can involve permanent loss, provider failure and technical error. A checklist organizes the questions; it cannot certify a wallet, exchange or asset as safe.

Editorial research reviewed 9 November 2026. This is an educational guide; examples are hypothetical. Source documents: Investor.gov: Crypto Asset Custody Basics; FDIC: Crypto Companies and Deposit Insurance. Rules, services and account terms vary by jurisdiction.