"Not your keys, not your crypto" is one of the most repeated phrases in crypto.

That very well could be because the bankruptcies that occurred in 2022 proved it to be true yet again — if you're not holding crypto funds yourself, could it all go up in flames? After all, there is no Federal Deposit Insurance Corporation (FDIC) to fall back on as there is in banking.

And yet, many people still depend on centralized institutions like Coinbase to hold their crypto for them.

In the ongoing debate about cryptocurrency self-custody, Roundtable anchor, Rob Nelson, raised a crucial point: Is it really necessary? “Do I have to really eventually self-custody?” Nelson asked, reflecting a common hesitation about the complexity involved. He acknowledged that many people avoid self-custody due to its perceived difficulty and their reluctance to learn.

Caitlin Long, CEO of Custodia Bank, addressed these concerns by presenting alternatives to self-custody, such as ETFs and multisig arrangements. “There are ETFs, centralized exchanges, and multisig setups where a service provider helps you manage your private keys,” Long explained. She stressed that without self-custody, users effectively lend their assets to institutions, which could fail. Learning self-custody, she argued, is essential for true financial security.

Nelson compared this to the American tradition of self-reliance, suggesting that preparing for potential digital disruptions should follow the same principles. “If the power goes out or everything goes wrong, I know what to do,” he said, implying that the same mindset applies to digital finances. Long concurred, noting that individuals in less developed regions often have to become proficient in managing their finances due to necessity.

Long further emphasized that even in the relatively stable U.S. financial system, preparing for disruptions is wise. She likened self-custody to purchasing insurance, stating, “If you knew you could control your own future and didn’t invest the time, would you regret it if something happened?” She urged people to take self-custody as seriously as they would insurance, highlighting its importance for ensuring financial security and independence.