What Is a Self-Custodial Wallet?
Self-Custody in One Sentenceâ
With a self-custodial wallet, you hold the keys that control your crypto, so only you can move it.
Gem Wallet is self-custodial. Your Secret Phrase and private keys are created and stored on your device, and they never leave it. Gem Wallet doesn't hold your funds and can't access them.
Self-Custodial vs Custodialâ
| Self-custodial wallet, like Gem Wallet | Custodial account, like an exchange | |
|---|---|---|
| Who holds the keys | You | The company |
| Who can move the funds | Only someone with your Secret Phrase or private key | The company, on your instructions |
| Account sign-up | None. No email, password, or ID needed | Usually email, password, and identity checks |
| If you forget your login | There's no login. Restore with your Secret Phrase | The company can reset your password |
| If you lose your backup | Nobody can restore the wallet for you | The company can usually restore access |
| Can funds be frozen? | Gem Wallet can't freeze or block your funds | The company can freeze or limit withdrawals |
| If the company stops operating | Your funds stay on the blockchain, and you can use your phrase in another wallet | Access depends on the company |
What Gem Wallet Can and Can't Doâ
Because Gem Wallet never has your keys:
- â It can show your balances, prepare transactions, and warn you about risks before you sign.
- â It can't recover your wallet if you lose your Secret Phrase.
- â It can't reverse a transaction or get back funds sent to the wrong address.
- â It can't freeze, block, or confiscate your funds.
- â It can't see your Secret Phrase, and support will never ask for it.
What You're Responsible Forâ
- Back up your Secret Phrase offline, and keep it private. It's the only way to restore your wallet. See Securing your Secret Phrase.
- Check every transaction before you confirm. See How to Review a Transaction Before You Confirm.
- Protect your phone with a passcode and turn on Gem Wallet's app lock. See How to Lock Gem Wallet with Face ID, Touch ID, or a Passcode.
warning
Anyone who gets your Secret Phrase can take your funds, and nobody can undo it. Never type it into a website or share it, even with someone claiming to be Gem Wallet support.
What About Buying, Selling, and Swapping?â
Your wallet stays self-custodial when you use these features:
- Buying and selling go through third-party fiat providers. They may ask you to verify your identity under their own rules, and they send crypto to your own wallet address.
- Swaps run through decentralized protocols and are signed from your wallet. Gem Wallet doesn't hold your funds during a swap. See What are Swap Providers?