Why you should know this
If we do not know which record controls the value, we cannot judge custody, delays or recovery.
There may be more than one record
On a public blockchain, network participants maintain and verify a shared history under protocol rules. The network record connects assets to addresses or transaction outputs.
A custodial exchange may also keep an internal customer ledger. A trade between its customers might update that ledger before any blockchain transfer occurs.
A wallet reads and authorizes
A wallet interface reads relevant network data and helps create signed transactions. It does not hold coins like a gallery holds photos.
With self-custody, the user controls the keys. With custody, the provider controls them and shows the customer a claim or balance under its terms.
A familiar example
Angela sends crypto from one account to another inside the same provider. The app may update quickly. A later withdrawal to her own wallet creates an on-chain transaction with a network identifier.
One limit to remember
Do not treat a provider’s status label and a blockchain confirmation as the same event. Support teams, networks and receiving services may each see a different stage.
How this connects to market mastery
Reading market flows and investigating transfers both depend on knowing which ledger you are observing.
Quick check — no money needed
For a custodial account, name the two possible records: the provider’s __ and the blockchain __.
If you can answer that clearly, this lesson is complete.
*Cryptocurrency and virtual asset transactions are highly volatile and irreversible, may result in significant losses, and do not guarantee returns; customers should trade only after understanding the risks involved.
