"Do I need to be tech-savvy to self-custody?"

Absolutely not. If you can use a smartphone, you can self-custody bitcoin. The "it's too technical" excuse died in 2018. Modern hardware wallets are designed for normal everyday people, not hyper-technical computer nerds.

"What if my hardware wallet maker goes bankrupt?"

Doesn't matter! Your bitcoin isn't stored on the device -- it's on the blockchain. Your seed phrase works with any compatible wallet. Foundation (maker of Passport hardware wallet) goes under? Import to a new wallet. Done.

"What if the government bans self-custody?"

Then you'll be really glad you already have it. Look at history -- governments don't announce bans in advance. They happen overnight (see: Executive Order 6102, India's cash ban, China's crypto crackdowns). By the time a ban is announced, exchanges are frozen and it's too late. The time to self-custody is NOW, while you still can.

"How do taxes work when I self-custody?"

Same as ETFs -- you owe capital gains when you sell. The difference? With self-custody, YOU decide when to create taxable events. Not your broker. Not the government. You. (Not tax advice -- talk to a real accountant. But the control is nice.)

"What happens if Bitcoin Well goes out of business?"

Well that’s not happening any time soon, but let's entertain the hypothetical. Here's the beautiful thing about self-custody -- it literally doesn't matter! Once your bitcoin is in your hardware wallet, it's yours forever. Full stop. No company on Earth (including us) can touch it. We could vanish into thin air tomorrow and your bitcoin would still be sitting in your wallet, safe as ever. Try getting that guarantee from your bank, ETF, or exchange. (Spoiler: you won't)

Bitcoin ETF vs Self-Custody: Fees, Access & Security Compared

By Steve Mahoney

/ 2025-06-19

Steve Mahoney

Steve has self-custodied bitcoin since 2016 -- before SegWit, Taproot, or ETFs -- weathering three halvings and two bear markets. As Digital Marketing Specialist at Bitcoin Well, he turns security-first best practices into plain English for newcomers.