Decentralized finance · 7 min
Custodial platforms vs self-custody
When someone else holds the keys, you are trusting them. When you hold the keys, you are trusting yourself.
A custodial platform (often called a centralized exchange) holds coins for you, like a bank holds a balance. It is convenient. It is also a counterparty. If the company freezes, gets hacked, or fails, your access depends on them.
A decentralized exchange lets you swap from a wallet you control. You keep the keys. You also keep the risk of signing the wrong thing.
Self-custody means you hold the seed phrase. That is the standard Doginal Dogs marketplace path: you create or import a Dogecoin wallet, back up the words, then fund it.
There is no perfect choice. Convenience versus control. The educational point is to know which one you are using, every time you click.