Self-custody is the whole point of Bitcoin. But doing it wrong can be worse than using an exchange.

1. The I-Will-Remember Seed Phrase — Write it down on steel. Memory fails under stress.

2. Single Location Backup — Two copies, two locations minimum.

3. Untested Recovery — Test restoring from backup annually. Send a small amount, wipe, restore.

4. Bus Factor of One — Create an inheritance plan. A sealed letter with step-by-step instructions.

5. Security Theater — Hardware wallet + phone app checking balance via third-party server = your privacy is gone. Run your own node.

6. Forgotten Passphrase — Back it up separately from the seed. Treat it with equal seriousness.

7. Outdated Firmware — Check quarterly. Known vulnerabilities get exploited.

Self-custody is an ongoing practice, not a one-time setup. The best time to audit your setup is before you need it.