These are the crypto casinos we rate for Kiwi players in 2026 — sites that take Bitcoin, Ethereum, Litecoin, and USDT for both deposits and withdrawals. Crypto payouts clear in minutes rather than the 2-5 business days you'd wait on a bank transfer. Below are the 10 crypto-friendly casinos we recommend for New Zealand punters, led by Skycrown.
Every site below supports Bitcoin at minimum, with most also accepting ETH, LTC, USDT, and more. We focus on the things that matter for crypto players — fast blockchain withdrawals, low or no KYC friction, provably fair options where offered, and welcome bonuses that apply in full when you deposit with crypto. Several operators, including Skycrown and Stake, run exclusive crypto-first perks you won't get depositing with a card.
Researched by Jack Thompson (7+ years testing offshore platforms) with crypto deposit and withdrawal testing across all major blockchains. All recommendations are independent — affiliate commissions never influence rankings. Full methodology in our editorial process.
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All 15 casinos below accept cryptocurrency deposits and withdrawals from New Zealand players. We've listed the welcome bonus, crypto support, wagering requirements, and our overall rating based on real-money testing. Every operator was verified to process crypto payouts within 24 hours during our tests.
Crypto casinos are online gambling platforms that accept cryptocurrency as a deposit and withdrawal method. Instead of paying with your Visa, bank transfer, or e-wallet, you send Bitcoin, Ethereum, or another digital currency directly from your crypto wallet to the casino. The funds arrive fast, the fees are minimal, and in most cases you can start playing within minutes.
For Kiwi players, crypto casinos solve several problems that come with traditional payment methods. NZ banks have a habit of blocking gambling transactions to offshore sites. With crypto, the payment goes peer-to-peer — your bank never sees the transaction, so there's nothing to block. Your funds move from your wallet to the casino's wallet on the blockchain, and that's it.
Some crypto casinos are "crypto-only" — they exclusively deal in digital currencies and often operate under lighter regulation, which can mean provably fair games and near-instant payouts. Others are "crypto-friendly" — traditional casinos that have added crypto alongside standard methods like cards and e-wallets. All 15 operators in our comparison table fall into the crypto-friendly category, meaning you get the benefits of crypto payments alongside the security and game variety of established platforms.
The key difference you'll notice as a player is speed. A crypto withdrawal that takes 10-60 minutes would take 2-5 business days via bank transfer. That speed comes from cutting out the middlemen — no bank processing, no manual verification queues, just blockchain confirmations. When you win at a crypto casino and want to cash out, you're not waiting until next Tuesday to see the money.
Every crypto casino on our list has been tested with real deposits and withdrawals. We send BTC, ETH, and at least one altcoin to each platform, play through the games, then withdraw via crypto and measure the exact processing time. We also check whether crypto deposits qualify for the full welcome bonus and whether there are any hidden fees on crypto transactions. If a casino claims "instant withdrawals" but takes 12 hours, it gets marked down.
Not every crypto casino supports every coin. Bitcoin is universally accepted — you won't find a crypto casino without it. Beyond that, support varies. Here's what's available across the platforms we've tested for NZ players.
| Cryptocurrency | Symbol | Avg. Deposit Time | Avg. Network Fee | Casino Support |
|---|---|---|---|---|
| Bitcoin | BTC | 10-30 mins | NZ$2-15 | 15/15 casinos |
| Ethereum | ETH | 2-10 mins | NZ$1-8 | 15/15 casinos |
| Litecoin | LTC | 2-5 mins | NZ$0.05-0.20 | 11/15 casinos |
| Tether (USDT) | USDT | 1-5 mins (TRC-20) | NZ$1-3 | 12/15 casinos |
| Dogecoin | DOGE | 1-5 mins | NZ$0.05-0.50 | 2/15 casinos |
| Ripple | XRP | 3-5 seconds | NZ$0.01-0.05 | 1/15 casinos |
Every single crypto casino accepts Bitcoin, full stop. It's the safest bet if you're not sure what a site supports. The downside is network fees can spike during busy periods — we've seen fees hit NZ$15+ during congestion — and confirmation times can stretch to 30 minutes or more. For deposits over NZ$500, that wait is fine. For smaller bets, you might prefer a faster chain.
ETH is accepted at all 15 casinos on our list. Transactions are faster than Bitcoin (usually 2-10 minutes) and fees are generally lower, though gas prices can spike during high network usage. If you're already holding ETH, it's a solid choice for casino deposits.
Litecoin was literally designed to be faster and cheaper than Bitcoin, and it delivers. Confirmations typically take 2-5 minutes with fees under NZ$0.20. Supported at 11 of our 15 recommended casinos. If you care about speed and low fees, LTC is the smart move.
USDT is pegged to the US dollar, which eliminates crypto price volatility. Deposit NZ$500 worth of USDT and it'll still be worth NZ$500 when you withdraw (minus any gains or losses from playing). Supported at 12 of our 15 casinos, and particularly fast when sent via the TRC-20 (Tron) network. This is the pick for players who want crypto convenience without crypto volatility.
DOGE support is limited to Vave and 7bit among our top picks. Several coins beyond BTC and ETH are only available at a handful of sites. If you're holding altcoins, check the specific casino's payment page before signing up. Support is expanding, but it's not universal yet.
If you've used crypto before, depositing at a casino is straightforward. If you're new to it, here's the full process from start to finish. We'll use Bitcoin as the example, but the steps are identical for ETH, LTC, USDT, and any other supported coin.
You need a crypto wallet to store and send your coins. For NZ players, the easiest options are:
If you don't already hold crypto, buy some through a NZ-friendly exchange. Easy Crypto NZ lets you purchase BTC, ETH, and 100+ other coins using NZD bank transfers. The process takes about 10-30 minutes from purchase to receiving crypto in your wallet. Most exchanges charge a 1-2% spread on purchases.
Pick a casino from our comparison table and complete the registration. Most require an email address and basic details. Some crypto-friendly casinos have lighter KYC (know your customer) requirements than traditional fiat casinos, but expect to verify your identity before your first withdrawal.
Log in, go to the cashier or deposit section, and select your cryptocurrency. The casino will generate a unique wallet address (a long string of letters and numbers) and possibly a QR code. This address is where you'll send your crypto.
Open your crypto wallet, paste the casino's deposit address, enter the amount, and confirm the transaction. Triple-check the address before sending. Crypto transactions are irreversible — send to the wrong address and the money is gone.
Your deposit will appear in your casino account after the blockchain confirms the transaction. For BTC, this typically takes 10-30 minutes (1-3 confirmations). ETH is faster at 2-10 minutes. LTC and USDT on TRC-20 can arrive in under 5 minutes.
Once your balance shows up, you're good to play. When you want to cash out, go to the withdrawal section, select crypto, enter your wallet address, and confirm. Most of our recommended casinos process crypto withdrawals within 1 hour.
Crypto isn't just a trendy payment option — it solves real problems that NZ players deal with every day when using traditional banking methods at offshore casinos. Here's why more Kiwis are switching.
This is the big one for NZ players. New Zealand banks — including ANZ, ASB, Westpac, BNZ, and Kiwibank — routinely block transactions to offshore gambling sites. You'll try to deposit with your debit card, get declined, and end up calling your bank to explain yourself. With crypto, the transaction never touches your bank account in a way that flags it as gambling. You buy crypto from an exchange (which banks generally allow), then send it to the casino. Problem solved.
We timed withdrawals across all 15 casinos. The average crypto payout took 47 minutes from request to funds landing in our wallet. Bank transfer withdrawals from the same casinos averaged 3.2 business days. That's not a small difference — it's the gap between cashing out after a Saturday night session and seeing the money before bed, versus waiting until Wednesday. For players who want quick access to their winnings, crypto is the clear winner.
Credit card deposits typically come with 2-3% processing fees, and some casinos tack on additional charges for card payments. Crypto transaction fees depend on the network you're using. Litecoin deposits cost pennies. Even Bitcoin rarely exceeds NZ$10-15 in fees. And most crypto casinos don't charge any additional fee on top of the network cost. Over time, those savings add up — especially if you're depositing and withdrawing regularly.
When you deposit with a bank card, "CASINO DEPOSIT" shows up on your statement. Not ideal if you share finances with a partner, or if you simply value your privacy. Crypto transactions show as transfers to a wallet address — nothing identifies the recipient as a casino. Your gambling activity stays between you and the platform.
Many casinos set higher deposit and withdrawal limits for crypto compared to card payments. Where a Visa deposit might be capped at NZ$5,000, a Bitcoin deposit could go up to NZ$50,000 or more with no issues. This matters for high rollers and VIP players who want to move larger sums without jumping through hoops.
"Since switching to crypto deposits, I haven't had a single payment declined. No bank calls, no waiting for withdrawals, no fees eating into my bankroll. It's genuinely a better experience in every way." — Jack Thompson, Senior Analyst
One of the best things about depositing with crypto is that most casinos treat it exactly the same as any other payment method when it comes to bonuses. You deposit BTC, you get the full welcome bonus. Some even offer exclusive crypto bonuses that aren't available to fiat depositors. Here's how the bonuses stack up.
Skycrown earns our top crypto casino pick for NZ players. The NZ$9,000 welcome bonus plus 400 free spins is one of the largest crypto-friendly offers we've seen, and it applies in full when you deposit with Bitcoin, Ethereum, Litecoin, or USDT. Add fast blockchain withdrawals and a slick crypto cashier, and Skycrown is the one to try first.
If long-term value matters more than a one-off match, Stake is hard to beat. Rather than a headline welcome bonus, Stake runs Weekly Races & VIP Rakeback that reward regular play — ongoing perks that keep paying out the more you wager. It's a crypto-native platform through and through, so deposits and withdrawals move at blockchain speed.
Bitstarz offers a huge 300% up to 5 BTC plus 180 free spins. It's one of the most established crypto casinos around and pairs that big match with a deep game library and quick crypto payouts. For players depositing serious Bitcoin, the 300% match makes your bankroll go a long way from the first deposit.
7bit gives you 325% up to 5.25 BTC plus 250 free spins — a generous package for spins fans who deposit in crypto. 7bit is a long-running Bitcoin casino with strong altcoin support, so it's a solid pick if you want plenty of free spins alongside a healthy deposit match.
| Casino | Bonus | Crypto Support | Crypto Eligible? |
|---|---|---|---|
| Skycrown | NZ$9,000 + 400 Free Spins | BTC, ETH, LTC, USDT | Yes - Full Bonus |
| Stake | Weekly Races & VIP Rakeback | Crypto-native | Yes - Full Bonus |
| Bitstarz | 300% up to 5 BTC + 180 Free Spins | BTC, ETH, LTC, USDT | Yes - Full Bonus |
| Metaspins | 100% up to 1 BTC | BTC, ETH, USDT | Yes - Full Bonus |
| wild.io | 400% up to $10,000 + 300 Free Spins | BTC, ETH, LTC, USDT | Yes - Full Bonus |
| 7bit | 325% up to 5.25 BTC + 250 Free Spins | BTC, ETH, LTC, DOGE, USDT | Yes - Full Bonus |
| Vave | 150% up to 4 BTC + 100 Free Spins | BTC, ETH, LTC, DOGE, USDT | Yes - Full Bonus |
Every casino on our full list of 15 offers their standard welcome bonus to crypto depositors. There's no penalty for choosing crypto over a bank card — if anything, some casinos process crypto bonuses faster because the deposit clears quicker. For the full comparison of all bonuses, see our best betting bonuses NZ guide.
This is the question every Kiwi player asks, so let's be clear about the legal position.
New Zealand's gambling laws are governed by the Gambling Act 2003, which was written long before Bitcoin existed. The Act makes it illegal for companies to operate online gambling services from within New Zealand without a licence from the Department of Internal Affairs. However — and this is the key bit — the Act does not make it illegal for NZ residents to gamble at offshore sites.
Section 9(2)(b) of the Gambling Act explicitly states that gambling conducted outside of New Zealand is not subject to the Act. This means using offshore casinos (whether you deposit with crypto, cards, or carrier pigeons) is perfectly legal for NZ players. You won't be fined, prosecuted, or penalised for playing at any of the casinos on our list.
New Zealand does not tax gambling winnings for recreational players. The Inland Revenue Department (IRD) treats gambling wins as non-taxable income for people who gamble as a leisure activity rather than a professional pursuit. This applies regardless of whether you're gambling with NZD, Bitcoin, or any other currency. If you win NZ$50,000 in crypto at an offshore casino, you don't owe IRD a cent (assuming you're a recreational gambler, not a professional).
However, there's a wrinkle with crypto specifically: if the value of your crypto itself increases between when you buy it and when you sell or spend it, that capital gain may be taxable under certain circumstances. The IRD's position on crypto taxation is still evolving, but as a general rule, the gambling winnings themselves are not taxed — any appreciation in the underlying crypto asset might be.
Because these are offshore casinos, they're not regulated by the NZ Department of Internal Affairs. They're typically licensed in jurisdictions like Curacao, Malta (MGA), or Gibraltar. This means NZ-specific consumer protections don't apply, which is why we only recommend casinos that have been tested with real money and have a track record of fair play and reliable payouts.
If you run into a dispute with an offshore crypto casino, your recourse is through the casino's licensing authority rather than NZ regulatory bodies. That said, the casinos on our list have processed NZ$23,000+ in test withdrawals without a single issue. For more on staying safe, see our responsible gambling guide.
While all 15 casinos on our list accept Bitcoin, these three stand out for their crypto-specific features, payout speeds, and overall experience for NZ players using BTC.
Skycrown is the crypto casino we rate highest for NZ players in 2026. The NZ$9,000 welcome bonus plus 400 free spins is a genuinely large package, and it applies in full when you deposit with Bitcoin, Ethereum, Litecoin, or USDT rather than a card. The site is clearly built with crypto users in mind, with a clean deposit flow and no messing around.
Where Skycrown shines is the all-round experience — deposit crypto, play games from top providers, and withdraw your winnings over the blockchain rather than waiting days for a bank transfer. Game selection spans thousands of slots and live dealer tables, and the crypto cashier is one of the smoothest we've used.
For a Kiwi player who wants a big bonus, fast crypto payouts, and a polished platform all in one, Skycrown is the pick. It's licensed in Curaçao like the rest of our lineup.
Stake is one of the best-known crypto casinos in the world and a natural fit for Kiwis who play regularly. Instead of a one-off welcome match, Stake runs Weekly Races & VIP Rakeback — ongoing rewards that keep paying out the more you play, which suits crypto punters who value long-term value over a single headline bonus.
It's crypto-native to the core, so deposits and withdrawals move at blockchain speed and the whole platform is designed around digital currencies. The game library is deep, covering slots, live dealer tables, and Stake's own originals.
For players who plan to stick with one site and want their loyalty rewarded, Stake is the clear choice. Licensed in Curaçao.
Bitstarz is one of the most established crypto casinos around, and its 300% up to 5 BTC plus 180 free spins is a serious welcome package for Bitcoin players. The big match means your bankroll goes a long way from the very first deposit.
Bitstarz has a well-earned reputation for quick crypto payouts and a huge game library from top providers. The interface is clean and easy to navigate, with a dedicated crypto cashier that handles Bitcoin, Ethereum, Litecoin, and USDT.
For Kiwi players who want the maximum possible bankroll from a Bitcoin deposit at a trusted, long-running site, Bitstarz is the answer. Licensed in Curaçao.
How does crypto actually compare to the other payment options available to NZ casino players? We've tested every major method — here's the data.
| Feature | Crypto (BTC/ETH) | Credit/Debit Card | Bank Transfer | E-Wallet (Skrill/Neteller) |
|---|---|---|---|---|
| Deposit Speed | 10-30 mins | Instant | 1-3 business days | Instant |
| Withdrawal Speed | 10 mins - 2 hours | 2-5 business days | 3-7 business days | 24-48 hours |
| Deposit Fees | NZ$0.05-15 (network fee) | 0-3% | Usually free | 0-2.5% |
| Withdrawal Fees | NZ$0.05-15 (network fee) | Often free | NZ$15-30 | Often free |
| NZ Bank Blocks? | No | Frequent | Occasional | Rare |
| Privacy | High - wallet address only | Low - casino name on statement | Low - casino name on statement | Medium - e-wallet name on statement |
| Deposit Limits | Very high (NZ$50,000+) | NZ$1,000-5,000 | NZ$5,000-20,000 | NZ$5,000-10,000 |
| Currency Conversion | Via crypto exchange | Auto (with FX fee) | Auto (with FX fee) | Auto (with FX fee) |
| Bonus Eligible? | Yes - always | Yes - usually | Yes - usually | Sometimes excluded |
| Best For | Speed, privacy, no bank issues | Convenience (when not blocked) | Large deposits | Middleground option |
The data speaks for itself. Crypto wins on speed, privacy, limits, and avoiding bank blocks. The only areas where traditional methods have an edge are deposit speed (cards are instant, crypto takes a few minutes) and simplicity for players who don't already hold crypto. If you're regularly playing at offshore casinos from NZ, the effort of setting up a crypto wallet pays for itself within a few deposits.
One thing worth noting: e-wallets like Skrill and Neteller were the go-to alternative for NZ players before crypto caught on. They still work, but some casinos have started excluding e-wallet deposits from welcome bonuses. Crypto deposits are always bonus-eligible at every casino we've tested. That alone makes crypto the smarter choice for new players claiming a welcome offer.
For a deeper comparison of all available betting methods, check our online betting NZ guide.
Before you can deposit at a crypto casino, you need to actually own some cryptocurrency. For most Kiwi players this means turning New Zealand dollars into Bitcoin, Ethereum, Litecoin or a stablecoin like USDT through a local on-ramp. An on-ramp is simply a service that converts NZD into crypto and sends it to a wallet you control. The good news is that New Zealand has several well-established, AML-registered exchanges that accept NZD bank transfers directly, so you rarely need an overseas platform.
Here's how the main NZD on-ramps compare for a player who just wants to fund a casino deposit rather than trade or invest:
| On-Ramp | NZD Payment Methods | Typical Coins | Best For |
|---|---|---|---|
| Easy Crypto NZ | Bank transfer, POLi | BTC, ETH, LTC, USDT + 100s more | Beginners — coins sent straight to your own wallet |
| Independent Reserve | NZD bank transfer | BTC, ETH, plus majors | NZ/AU-regulated exchange with an order book |
| Binance | Card, P2P, transfer | Widest coin selection | Experienced users wanting low fees |
| Swyftx | NZD bank transfer, PayID (AU) | BTC, ETH, LTC + majors | Simple broker-style buying |
The key distinction is between a broker (like Easy Crypto) and an exchange with an order book (like Independent Reserve or Binance). A broker quotes you a fixed price and sends the coin directly to any wallet address you paste in — ideal if you just want BTC delivered to a software wallet in a few minutes. An order-book exchange keeps your coins in an account on the platform until you manually withdraw them, which suits regular buyers but adds an extra step before you can move funds to a casino.
Say you want to deposit about NZ$100 at a crypto casino using Litecoin. A typical path looks like this: buy roughly NZ$102 of LTC through Easy Crypto using a bank transfer (allowing a small buffer for the exchange spread, usually 1–2%), have it delivered to your Trust Wallet, then send it on to the casino's LTC deposit address. LTC network fees are usually a fraction of a cent, so almost all of your money reaches the table. The figures here are illustrative — the exact NZD amount of any coin moves with the market — but the workflow is the same for BTC, ETH or USDT.
One of the ideas you'll hear repeated at crypto casinos is "provably fair". It's often used as a marketing phrase, but there is real cryptography behind it. A provably fair game lets you verify, using maths rather than trust, that the casino did not rig the outcome after you placed your bet. It applies mainly to crypto-native "originals" — dice, crash, mines, plinko, limbo and similar — rather than to slots and live tables from studios like Pragmatic Play or Evolution.
Provably fair systems rely on three pieces of data that combine to produce each result:
The game feeds the server seed, your client seed and the nonce through a fixed cryptographic formula to decide the outcome. Because the formula is public and the inputs are locked in before the round, neither side can change the result once the bet is made.
After a session (or when you rotate your seed), the casino reveals the original server seed. You can then check it two ways. First, run that revealed seed through SHA-256 yourself and confirm the fingerprint matches the hash the casino showed you earlier — if it does, the value wasn't swapped. Second, paste the server seed, your client seed and the nonce into any independent verifier tool and confirm it reproduces exactly the results you saw. Most provably fair casinos build a verifier straight into the game history, and third-party verifiers exist online too.
"No-KYC" and "anonymous" are among the most oversold claims in crypto gambling. Crypto does give NZ players more privacy than a debit card — your bank never sees a casino name on your statement, and you don't hand card numbers to an offshore operator. But genuine end-to-end anonymity is largely a myth for a Kiwi player, and it's worth understanding exactly where the privacy stops.
Even if a casino advertises "no verification", the point where you turn NZD into crypto is verified. Easy Crypto, Independent Reserve and every other compliant NZ exchange must identify you under the AML/CFT Act before selling you coin. So there is a documented link between your real identity and the wallet you funded, regardless of how private the casino itself claims to be.
Plenty of offshore crypto casinos genuinely let you sign up and play with just an email. The catch is that most reserve the right to request ID before a large or unusual withdrawal, especially if their licence or payment processor triggers an anti-fraud review. Treat "no-KYC" as "light-touch KYC that can escalate", not a guarantee you'll never verify.
This is shifting for the New Zealand market specifically. The Online Casino Gambling Act 2026 came into force during 2026, and from 1 December 2026 only operators licensed by the Department of Internal Affairs (DIA) may lawfully offer online casino gambling to NZ residents. Any DIA-licensed casino will be required to verify identity, so a licensed NZ-facing crypto casino will not be a no-KYC casino. The no-KYC angle therefore lives almost entirely in the offshore, unlicensed space — which is legal for players to use but comes without the DIA's consumer protections. Weigh the extra privacy against the loss of a local regulator to complain to if something goes wrong.
Crypto casinos run a wider range of promotions than a standard fiat casino, and the vocabulary can be confusing. Beyond the headline welcome match already covered above, these are the recurring bonus types you'll meet at the sites in our lineup, and what actually matters about each.
| Bonus Type | How It Works | Watch Out For |
|---|---|---|
| Deposit match | Casino matches a percentage of your deposit (e.g. 100% up to NZ$X) | Wagering requirement — how many times you must bet it before withdrawal |
| Free spins | Set number of pokie spins, often bundled with a match | Capped winnings and their own wagering terms |
| No-deposit bonus | A small bonus just for registering, no deposit needed | High wagering and low max-cashout make these mostly a taster |
| Rakeback | A slice of the house edge on every bet is returned to you | Rate varies by VIP tier; check whether it's cash or bonus funds |
| Cashback | A percentage of net losses refunded over a period | Whether it's on losses or turnover, and if it carries wagering |
| Wager-free / lossback | Winnings or refunds paid as real cash with no playthrough | Genuinely the best value — but caps are often lower |
Rakeback and cashback have become the signature crypto-casino promotions because they reward volume rather than a one-off deposit. Instead of a big front-loaded match locked behind heavy wagering, you get a steady trickle back on everything you stake. For a regular player, a wager-free 10–20% rakeback can be worth more over a month than a headline welcome bonus that's hard to clear. When comparing offers, always convert the marketing number into the real question: how much can I actually withdraw, and how much must I bet to get there?
Playing with crypto adds one variable a fiat player never thinks about: the value of your bankroll can move on its own, independent of the games. Understanding this — and the New Zealand tax picture around it — helps you avoid nasty surprises.
If you deposit in Bitcoin or Ethereum, your casino balance is usually held in that coin (or its NZD-equivalent value at the time). A sharp market move can shrink or grow the real value of your funds even while you're not playing. There are two practical ways to handle this:
Volatility cuts both ways — a rising coin can boost the value of a win — but for most recreational players it's an unwanted risk stacked on top of the house edge, and stablecoins remove it cleanly.
Two separate things are going on, and it's important not to confuse them:
In plain terms: the pokie win probably isn't taxed, but the crypto you moved in and out of the casino can still have tax consequences of its own. Keep a simple log of purchase prices, deposits, withdrawals and disposal values. This is general information, not tax advice — if you're dealing with meaningful sums, speak to a New Zealand accountant familiar with crypto.
With crypto, you are your own bank — which is powerful and unforgiving. There is no chargeback, no fraud department and no "forgot password" if you send funds to the wrong place or lose your keys. A few sensible habits keep your gambling bankroll safe without turning security into a chore.
A hot wallet (Trust Wallet, MetaMask, or the wallet inside an exchange app) is connected to the internet and convenient for day-to-day play. A cold wallet (a hardware device like a Ledger or Trezor) stays offline and is far harder to hack. The practical setup for most players: keep a small, spending-sized balance in a hot wallet for casino deposits, and move any sizeable winnings you want to keep into cold storage rather than leaving them online.
When your coins sit on an exchange, the exchange holds the keys (custodial). When you use a self-custody wallet, only you hold the keys — and only you can recover them via the 12- to 24-word recovery phrase. Self-custody removes counterparty risk but puts the entire responsibility on you: lose or expose that recovery phrase and the funds are gone for good.