Centralized exchanges offer a simple way to buy crypto, but they custody your assets for you, similar to how a bank holds your money. If you want greater control over your crypto, access to more tokens, and the ability to use any application onchain, a self-custody wallet is the way to go.
What is a self-custody wallet?
A self-custody crypto wallet offers users full ownership of their crypto assets by giving them sole control of the wallet’s “private key.” In cryptography, a “key” is a unique combination of characters (i.e., numbers and letters) — and crypto wallets have both a public key and a private key.
The public key can be freely shared and is often referred to as a “wallet address.” Like an email, if other people have your wallet address they can send you crypto.
The private key is more like a password. It is used to access the wallet and approve transactions, and should never be shared. Anyone who has your private key can access the crypto in your wallet.
A wallet is like an email client; it is an interface where you can input your private key and access your crypto.
There are two different types of self-custody wallets: hardware wallets, which are physical devices that store your assets offline, and software wallets, which are browser extensions, mobile apps, or desktop apps that allow you to quickly and easily swap assets, mint NFTs, and more. Popular software wallets include Uniswap wallet, MetaMask, Rainbow, and Phantom.
Why self-custody?
People love self-custody wallets because they put you in complete control of your crypto. Unlike centralized exchanges which handle private keys on behalf of users (which means they can freeze or seize your assets), self-custody wallets give you – and only you – access to your private keys.
With a self-custody wallet, you'll also unlock a wider range of tokens and gain the ability to connect to onchain apps. It's like upgrading your crypto toolkit with more powerful features:
| Centralized exchange account | Self-custody wallet |
|---|---|
| Assets are in custody of the exchange | Assets are in your control |
| Exchange holds your wallet’s private key | You hold your wallet’s private key |
| Limited assets to available to purchase | Variety of tokens available to swap |
| Limited or no ability to interact with onchain apps | Access to interact with onchain apps |
How do I transfer crypto from a centralized exchange?
Most centralized exchanges will display an option to transfer your crypto, though they may use a different term. Whether they call it withdrawing, sending, or transferring, it's all about moving your crypto from one place to another.
WHAT YOU’LL NEED
✔️ An account on a centralized exchange such as Coinbase or Robinhood
✔️ Crypto assets that you wish to send to your self-custody wallet (like ETH or BTC)
✔️ A crypto wallet that is compatible with the asset you are withdrawing
Step 1: Choose a compatible crypto wallet
Not all wallets support all assets. You'll need to confirm that the self-custody wallet you are using can support the assets you are transferring from your centralized exchange account. For example, a Bitcoin-only wallet won’t work for Ethereum-based ERC-20 tokens.
As an example, Uniswap wallet supports ERC-20 tokens on several chains including:
- Arbitrum
- Avalanche
- Base
- BNB Chain
- Blast
- Celo
- Ethereum
- Optimism
- Polygon
- Unichain
- World Chain
- ZKsync
- Zora
To confirm which chains or tokens your wallet supports, select the "Receive" or “Deposit” option in your wallet. Most wallets will provide information on which type of assets you can deposit. If your wallet does not display this information, check the user support documentation.
Not sure which wallet to use, or if you’re using a wallet that can support your crypto? Explore our guide to getting a crypto wallet.
Step 2: Copy your wallet address
Once you've set up your self-custody wallet and confirmed it supports the assets you are sending, you're ready to receive your crypto.
Next, open your self-custody wallet and find your wallet address. It's a long string of characters, often starting with “0x” for Ethereum addresses.
How to copy your wallet address:
- Look for the copy icon: Many wallets have a copy button next to the address.
- Manual copy: If not, you can highlight and copy the address manually.
To avoid potential errors, never manually type your wallet address. Always use the copy-paste function to ensure accuracy. A single typo will lead to irreversible loss of funds.
Finding your address in the Uniswap wallet app only takes seconds. Simply find the copy icon next to your wallet address located near the top of your phone’s display. To copy your address, tap the icon once. After you complete this step, a popup that says “Address copied” will appear.
Step 3: Initiate Your Transfer
- Log in to your centralized exchange account.
- Find the ‘Send,’ ‘Transfer,’ or ‘Withdraw’ option: This is usually located in the main menu or on the homepage.
- Select your crypto: Choose the specific asset you want to transfer.
- Enter the amount: Specify the amount of crypto you want to send.
- Paste your wallet address: Paste the wallet address you copied from your self-custody wallet into the “Recipient Address” field.
Double-check your information before confirming the transfer. Once you’ve checked the recipient address is correct, confirm the transfer.
It may take several minutes for your transaction to confirm. Most centralized exchanges will either show you the status of the transfer or provide a link to view the details of your transaction.
Once complete, your assets will be available in your self-custody wallet. Congrats on taking control of your digital assets!
Your keys, your future
Self-custody wallets offer more security and flexibility, allowing you to use onchain apps like Uniswap. Whether you’re making permissionless token swaps or providing liquidity to a pool, the Uniswap wallet makes accessing DeFi simple and more secure.
