Self-Custody / Multisig — How It Works & Best Providers

Self-custody means you control your own private keys — 'not your keys, not your coins.' Modern self-custody solutions use multisignature (multisig) technology where multiple keys are required to move funds, reducing the risk of single key loss. Collaborative custody models add a trusted third party who holds one key as a backup.

Trade-offs

Pros & Cons

+Pros

  • ✓Full control over your Bitcoin
  • ✓No counterparty risk
  • ✓Maximum privacy
  • ✓No custodian fees on holdings

−Cons

  • ✗You are solely responsible for security
  • ✗Key loss = permanent fund loss
  • ✗Inheritance planning is complex
  • ✗No insurance coverage typically

Ideal Users

Best For

Technically proficient individualsPrivacy-focused holdersSovereign individualsLong-term HODLers

Rankings

Best Self-Custody / Multisig Providers

Ranked by weighted Custody Score across 8 criteria.

1
5.4
Below AverageCustody Score

Sparrow Wallet is a Bitcoin desktop wallet focused on security, privacy, and usability. Supports full node connection, hardware wallet integration, PSBT, coin control, and advanced privacy features like Whirlpool.

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