Self-Custody, Exchange Custody or Third-party Custody: Which should I choose for storing my cryptocurrencies?

Well firstly, the answer to the above really depends whether you are a retail or an institutional investor.

If you are the former, you will most likely go for the first two options: self-custody or exchange custody as the third option will not be cost effective for most, due to the amount in custody.

On the other hand, if you are an institutional investor, your best bet will be using a third-party custody service provider. Why so?

Well, the reason is pretty simple and straightforward. While many crypto enthusiasts will argue that custody should be held by the investor themselves, however, this is simply impractical as investment firms and institutional-grade investors are not equipped for self-custody.

As for exchange custody, they are target for hackers because the customers’ digital assets are generally combined and stored in one big wallet. In addition, digital custody is not their core business.

Particularly, institutional investors have to understand that crypto custody requires more than simply holding a key. The custodian has to be on constant alert and ready to respond to possible danger against hackers as well as vigilance against human error and incompetence.

In the recent article in The Daily Hodl, Richard Gardner, CEO of Modulus suggested that we must begin to look at custody as a security-first functionality. Custodians should always stay on the cutting edge of technology so that they stay ahead of hackers and provide insurance that fully indemnifies investors for malfeasance if it does occur. Full article here:

The above aligns with Propine’s best practices. Propine is an MAS licensed and regulated digital assets custodian, which provide a single integrated platform, with multiple end-to-end solutions through an open horizontal system.

Propine’s solutions are blockchain-based and in partnership with IBM. They are built up with infrastructure complying with highest data security and protection standards which are ISO 270001 certified. All digital assets in custody are insured and audited, and we have a 24/7 Incident Response support.

For more info, please visit or email us at

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