Custody Risk vs Seed Phrase
Quick comparison to help you distinguish these two crypto terms.
Custody Risk
intermediate
risk
Custody risk is the potential for loss of cryptocurrency assets due to vulnerabilities in how private keys are stored and managed, whether through self-custody failures or third-party custodian issues.
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intermediate
fundamentals
A seed phrase is a sequence of 12-24 simple words that serves as the master backup for your cryptocurrency wallet, regenerating all private keys.
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