Here are the main ways to custody bitcoin, from least to most self-sovereign:
Bitcoin Custody Options
- Centralized Exchange - Shared custody wallets (Coinbase, Kraken). Some like River and Swan* allow buying/holding but not deposits
- Mobile Apps - Strike, Fold (simplified custody)
- Single-Signature Hardware - Trezor, ColdCard (the word “wallet” is not quite right, these are transaction signers)
- Hybrid-Signature - BitKey (multi-signature with unique recovery paths)
- Self-Managed Multi-Signature - 2-of-3 setup using Sparrow and hardware signers
- Assisted (or Collaborative) Multi-Signature — Companies like Unchained, Casa, or Swan hold 1 key, you control 2-4 keys plus backups
- Institutional (multi-party) Multi-Signature — All keys held by separate companies (like Onramp). Requires identity verification for transactions
The easiest but not actual Bitcoin...
- Bitcoin ETF - This is in essence having a third party hold bitcoin for you with a relatively low annual fee (~0.25%). Self Custody is better, but this is an option
Important Considerations
- Security (physical, digital, social engineering)
- Access & Recovery
- Counterparty Risk
- Estate Planning