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Education only · not financial, tax or legal adviceCanadian facts checked 2026-10-31 · a MITEY site
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Infographic

Who holds the keys? The custody spectrum

Moving right gives you more control and more responsibility. There is no option with full control and no responsibility.

Mitey the yeti pointing ahead while holding a clipboard, with a private key
Mitey says: Every number in this picture is worked out in the notes below it.
Custody spectrum1Custodialplatform2Smart/ shared-key3Softwarewallet4Hardwarewallet5Multisig/ coldless control · less to managemore control · more responsibilityKeys = control. Recovery phrase = the keys.
Who holds the keys? The custody spectrum. Moving right gives you more control and more responsibility. There is no option with full control and no responsibility.

Reading the infographic

  • Custodial platform: the platform holds keys; you rely on its controls and Canadian registration status.
  • Smart-contract or shared-key wallets: recovery options, but new contract and provider risks.
  • Software (hot) wallet: you hold keys on an internet-connected device.
  • Hardware wallet: keys stay on a dedicated device; you must protect the recovery phrase.
  • Multisig or cold storage: several keys or offline storage; strongest for large amounts, hardest to run.

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You may share this infographic with a link back to this page. Numbers are hypothetical teaching examples unless a date and source are shown.

Education only. Nothing on this page is financial, investment, tax or legal advice, or a recommendation to buy, sell, stake, lend or borrow any crypto-asset. Crypto-assets can lose some or all of their value and are not covered by CDIC. Canadian rules change: check the dated sources above and talk to a qualified professional about your situation. Full disclaimer.