STORE
Preserve and accumulate value while maintaining direct ownership
66% value self-custody, but 88% use centralized exchanges and only 15% use cold wallets.
44% of active traders use cold wallets, versus 24% of passive owners.
Cold-wallet users are more likely to associate self-custody with privacy (51% vs. 33%), control (46% vs. 29%), and safety (37% vs. 24%).
ASSET STORAGE REMAINS HEAVILY CENTRALIZED
Most crypto assets are still managed through centralized exchanges and hot wallets, while cold wallet adoption remains limited. Despite broad belief in self-custody, only 15% use cold wallets to hold and manage assets.
Use of crypto platforms for holding and managing assets
U.S. crypto users (n=2,044) | % selecting each option |
Multiple responses allowed
Centralized
exchanges
Hot wallets
Cold wallets
THE SELF-CUSTODY GAP
STRONG BELIEF,
LIMITED ADOPTION
Two-thirds of crypto users consider self-custody important
+17pp among
cold wallet users
cold wallet users
Self-custody — the direct control of assets through exclusive ownership of private keys, without reliance on intermediaries — lies at the heart of the philosophical and technical foundations of cryptocurrency.
It redefines ownership by placing authority directly in the hands of the individual, and it is one of the defining features that distinguishes crypto from traditional financial systems.
Among cryptocurrency users, the concept of self-custody is not only understood but actively valued: around two-thirds consider it important, with even stronger conviction among those who frequently use self-custody tools such as cold wallets.
KNOWLEDGE
DRIVES ADOPTION
The share using cold wallets increases from 4% among those with no knowledge to 58% among experts.
One of the clearest patterns in the research is the relationship between wallet knowledge and cold-wallet usage. Adoption is lowest among users with little or no knowledge and rises sharply across higher levels of familiarity.
No knowledge
Basic
knowledge
Intermediate
knowledge
Advanced
knowledge
Expert
knowledge
CRYPTO IS NO LONGER
JUST ABOUT HOLDING
Crypto users engage across multiple financial functions, from long-term wealth building and trading to spending, transfers, and interactions with applications. Together, these functions show how self-custody can extend beyond simply holding assets.
GROW
Deploy assets through trading, staking, yield generation, and portfolio diversification
SPEND
Move value through transfers, payments, and interactions with applications
WHAT PEOPLE EXPECT VS.
WHAT USERS EXPERIENCE
Direct experience is associated with a different perception of self-custody. Compared with CEX-only users, cold-wallet users are more likely to see self-custody as approachable, testable, and compatible with the tools they already use.
Irreversible loss risks
Usability risks
Irreversible loss and security risks are the most prominent concerns around self-custody.
THE MISCONCEPTION LAYER
HOW PERCEPTION
LIMITS ADOPTION
Familiarity declines as users move from exchanges to cold
wallets — narrowing how self-custody is understood
- Familiar with it
- Heard of it, but not familiar
- Never heard of it
Centralized exchanges are seen as the convenience layer, enabling ease of use, liquidity, and straightforward on- and off-ramps.
Hot wallets are seen as the activity layer, supporting transfers, staking, yield generation, and day-to-day engagement with onchain applications.
Cold wallets by contrast, are seen as the protection layer, associated primarily with asset protection and long-term storage of value.
FROM
UNDERSTANDING
TO ACTION
Familiarity and experience are not the only factors in adoption. Direct control also introduces a different level of personal responsibility, particularly around security, access, and irreversible transactions.
Current users.
High confidence
Non-users.
High confidence
Among current cold-wallet users, 75% report high confidence, compared with 33% of non-users. The most common concerns include losing funds if a wallet is lost or damaged (70%), irreversible transaction errors (62%), and theft or hacking (61%).
FROM PRINCIPLE
TO PRACTICE
Explore the full research to see the data, methodology, user behaviors, perceptions, and adoption dynamics behind the evolution of self-custody.
The research reveals a persistent gap between the value users place on self-custody and how they manage their assets in practice.
That gap appears to narrow as users become more familiar with self-custody, gain direct experience with it, and develop confidence in managing assets themselves.
Together, these dynamics help explain how self-custody moves from an idea users value to a tool they actively use.