Bitcoin Self-Custody Comes With Costs Beyond the Purchase
Holding bitcoin yourself shifts responsibility for security, backups and access recovery from a custodian to the owner.
The costs of holding bitcoin directly are the focus of a CoinDesk Crypto for Advisors headline. Self-custody gives owners control over their private keys, but also makes them responsible for safeguarding access to their holdings.
Potential expenses include hardware wallets and secure backup arrangements. Moving bitcoin on the network also requires transaction fees, which vary with demand for block space rather than being a fixed charge for holding the asset.
The burden is not solely financial: owners must manage security and recovery procedures. Losing private keys and any usable recovery backup can leave funds inaccessible, while compromised credentials can enable theft.
Source: CoinDesk
