Self-Custody vs Custodial Crypto Cards
The custody model is one of the most important decisions when choosing a crypto card. It determines who controls your private keys, how your funds are protected, and what happens if something goes wrong.
What Is a Custodial Crypto Card?
A custodial card is issued by a platform (exchange, neobank, or fintech) that holds your crypto on your behalf. You deposit funds into your account on their platform, and the card draws from that balance when you make a purchase.
Examples: Binance Card, Crypto.com Visa, Coinbase Card, Bybit Card.
Pros
- Simple onboarding and familiar UX (similar to traditional banking apps)
- Instant conversion at point of sale — no wallet interaction needed
- Often higher cashback rates due to platform token incentives
- Integrated portfolio management and trading within the same app
Cons
- You don't hold your private keys — "not your keys, not your coins"
- Counterparty risk: if the platform fails, your funds may be lost
- Platform can freeze your account (regulatory compliance, suspicious activity)
- Less privacy — full KYC and transaction monitoring
What Is a Self-Custody Crypto Card?
A self-custody card connects to your own non-custodial wallet (MetaMask, Ledger, Phantom, Gnosis Safe, etc.). Your crypto stays in your wallet until the exact moment of purchase, when it's converted to fiat and sent to the merchant via the card network.
Examples: MetaMask Card, Gnosis Pay, Ledger Card, Holyheld Card.
Pros
- You retain full control of your private keys
- No counterparty risk — funds aren't held by a third party
- Works with DeFi protocols (spend directly from yield-generating positions)
- Greater privacy (depending on the wallet and chain used)
Cons
- More complex UX — requires wallet management and transaction signing
- Gas fees on each top-up or conversion transaction
- Fewer card options available (market is still maturing)
- May require specific chains or tokens for compatibility
Side-by-Side Comparison
| Factor | Custodial | Self-Custody |
|---|---|---|
| Key control | Platform holds keys | You hold keys |
| Counterparty risk | High | Low |
| Ease of use | Simple | Moderate |
| Cashback rates | Often higher | Variable |
| DeFi integration | Limited | Native |
| Account freezing risk | Yes | Minimal |
| Gas fees | None | Per transaction |
Which Should You Choose?
Choose custodial if:
- You want the simplest possible experience
- You already use an exchange and want an integrated card
- Maximising cashback is your priority
- You're comfortable with the platform's reputation and track record
Choose self-custody if:
- You believe in "not your keys, not your coins"
- You want to spend directly from DeFi positions or cold storage
- You're technically comfortable managing wallets and signing transactions
- Minimising counterparty risk is your top priority
Top Self-Custody Cards
Browse by Custody Type
Use Sweepbase to filter cards by custody model and compare them side by side.