Custody is a relationship · Sikh Bitcoin

By the end, you’ll be able to…

Map the authority behind an account.
Compare convenience and dependence without choosing a product.

Your learning map

Three questions to carry into this lesson.

01Map the authority behind an account.

02Compare convenience and dependence without choosing a product.

Use these goals to guide your reading. Try the paper exercise, then explain the result in your own words.

Begin with authority

A balance on a screen may represent directly controlled Bitcoin outputs or a claim recorded by a service. Ask who can produce the signatures, who can reset access and who can refuse withdrawal. A login password for a custodial account is not the same kind of control as possession of a self-custody spending key.

Convenience has a shape

A provider may offer support, recovery, instant internal transfers and a familiar interface. Those features can also mean the provider controls records and policies. Self-custody changes that relationship, but introduces backup, device and operational responsibilities. Calling one option easy and the other sovereign does not tell a beginner how either fails in their circumstances.

Compare failure stories

Consider two fictional users: one loses a phone, another loses access to the company hosting an account. For each arrangement, write what information, people and software are needed to recover. Then consider theft, withdrawal restrictions and loss of a backup. This is an explanation exercise, not a recommendation to select a wallet, provider or balance size. A trustworthy course makes dependence visible without shaming a learner for their current setup.

Your turn / A paper experiment

Practice on paper

Make four columns for an imaginary wallet: who signs, who recovers, who can restrict access and what happens if the company disappears. Which unanswered item would stop a confident assessment?

I’ve tried it — show the worked answer

Any unknown authority or recovery path is material. A marketing label alone cannot fill the columns. Record “unknown” and consult the actual provider documentation rather than guessing.

Want to explore with buttons and instant feedback? Try the practice lab ↗

Think it through

Make a choice. Discover why.

Choose an answer and check the explanation. You can retry as often as you like. These are practice questions, not a test of mastery; answers are not saved or sent.

1. Is an account password always a Bitcoin private key?

Read the explanation

No. An account credential can authorize a request to a custodian rather than a Bitcoin transaction.

2. Does self-custody remove all risk?

Read the explanation

No. It changes the risk and responsibility; loss, theft and operational errors remain.

One idea to take with you

Choose understanding before labels.

Your learning, at your pace

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