▪️Bitcoin custody refers to the secure storage and management of Bitcoin private keys, which are required to access and transfer Bitcoin funds. Due to the decentralized and irreversible nature of Bitcoin transactions, safeguarding private keys is crucial to prevent unauthorized access and potential loss. Custodial services, offered by trusted third-party companies or platforms, allow individuals or institutions to store their Bitcoin securely. They implement various security measures, such as cold storage (keeping keys offline), multi-factor authentication, and encryption, to protect the assets. However, using custodial services means trusting the custodian with the keys, which can entail counterparty risk, and some may prefer to manage their keys independently through non-custodial means. #bitcoin #BTC #custody
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