What are the pros and cons of self-custody and custody service solutions?

Choosing between doing self-custody and using custody service solutions depends largely on individual needs. This choice determines whether you have control over your ICP tokens, or you allow a third-party to aid you. Making this decision depends on how important the decentralization, security, and management of your tokens is to you. 


If you are looking for the most control possible over your keys and ICP utility tokens, then look into performing self-custody.

  • The self-custody option allows for you to have full control over your tokens and your keys. However, you have to be extra careful with creating your cold storage and take full responsibility in safeguarding the private keys.


If control isn't as important to you as ease-of-use is, then using a custody service solution might be a better fit for you.

  • Custody service solutions are centrally managed by third parties. Your tokens are housed with the provider and you do not have to manage and securely store your private keys. However, most third party services do have fees.


For more information on self-custody and custody service solutions, check out the Internet Computer Wiki.