A wallet is necessary for self-custody. Some wallets are just software based and others are hardware based. A hardware wallet separates the private keys from the software so private keys are not at risk from discovery. All of the software discussed will be applicable even if not used with hardware, but security is strengthened with the combination of both.

When judging which software to begin with, an understanding of limitations is ideal, but not necessary.  Once the crypto assets are self-custodied, they are movable to further expand the intention of use. Along with switching of software without having to switch keys.

With adequate hardware, the transferring of funds between software is not necessary and software can be changed out or tried without any on-chain transactions. With wallets derived from software keys, to switch software will require trusting another software with the same keys or new keys generated and assets will have to be transferred on-chain.

To understand the capabilities of each crypto asset, an understanding of which network they reside on will help grasp the storage and usage limitation there in.

For example;

Bitcoin is sent and received on the bitcoin network.

Ether is sent and received on the Ethereum network.

Matic is sent and received on the Polygon network.

Of course there are exceptions to most rules. ETH, MATIC and even BTC can be wrapped to function on other networks. Bridges allow for inter-network swaps. It is also common for centralized exchanges to allow for withdrawal of funds to elective networks. Therefore upon a withdrawal request, the choice of network may be available along with the self-custody address.

As a safeguard, some networks standardized address schemes to reflect the uniqueness of each network, but others share the same scheme, which is a two edged sword. BTC addresses begin with a 1, 3, or BC, where ETH addresses always begin with a 0x, as do MATIC address, whether on the Ethereum Network or the Polygon network. So it is unlikely a user will accidentally send BTC to a 0x address, but it easy to overlooked when sending MATIC to an Ethereum network 0x address. This sort of user error however is forgiveable and funds should be safe as a self-custody wallet which generates keys for both ETH addresses and MATIC addresses. use the same keys. Simply changing the software will allow control over those assets, even if it was unintentiuonally sent to another network.

First steps to achieve self-custody, begins with the secure generation of keys, redundant backup of keys and software to interact with keys. In its basic form, keys for self-custody can be as simple as off-line generating and printing of a paper wallet. Withdrawing from a centralized exchange to a paper wallet is fine for storage and redundancy of backups can be achieved with multiple copies, stored in multiple locations and even in encrypted digital form, but interacting with them will not be secure or convenient. A software wallet can be used to generate keys for withdrawal and interacting with the software wallet generated keys will be convenient, easily backed-up and can also be redundantly stored. but will lack any of the secure elements found in hardware generated and stored keys. Hardware generated keys are generated and stored off-line, can interact with software wallets and can be backed up with redundancy.

Ledger, made in France and Trezor, made in Czech Republic are great devices for key storage and interfacing with software wallets. When generating keys on thses devices, they produces a new list of 24 words, which represent the private keys and can be used to reproduce the private keys, anytime, anywhere.

With keys securely generated, stored and backed up, the power of self-custody takes full effect. No matter the device, the country or the year, those assets stored on a decentralized blockchains will be accessible. Whether by sweeping funds from a paper wallet to a new software wallet, or regenerated the wallet from a backup or placing the original keys back onto a new hardware wallet, the power of crypto assets are never but a few steps away. With proper backup, never worry about current storage methods, whether paper that moths may eat, or computers drive which may become corrupted or hardware wallets which may be dropped, lost or stolen, the power is in the backup and because blockchains live on through decentralized design, crypto assets are always within reach.

Metamask, Rabby, Brave, and Exodus are just some of the many software wallets that will generate keys or can be used securely with hardware wallets to interact with the crypto assets contain and interface with Web3

Practice generating keys, backing them up, erasing them and import them once again and see the addresses associated with the original keys will be restored. Go beyond the custodial broker. Go beyond usernames and passwords, stored on computer systems controlled by others. Move into the self-custody world and be apart of decentralized finance.

Disclaimer: This overview is meant for educational purpose. RSR nor any author is responsible for loss of assets associated with self-custody. Consult a professional or contact support for any products associated with this overview. No company or product has endorsed this overview or methods discussed. RSR has no interest in logos, companies or products featured on this page. Use at your own risk.