Keeping your bitcoins under your own custody means using a wallet that you control, such as a software wallet (e.g., Electrum) or a hardware wallet (e.g., Trezor). This avoids relying on third parties, like exchanges, which can go bankrupt or be hacked. You have full control, privacy, and security, without risks of freezes or losses in case of problems with the platform.
The FTX case as an example
In November 2022, the FTX exchange collapsed after revealing poor financial management, with users unable to withdraw their bitcoins. Investigations showed that customer funds were misused, and although there are reimbursement plans, the process is slow and uncertain. This highlights how leaving bitcoins on exchanges can be risky.
How to start with self-custody
Use a secure wallet, back up the private keys in a safe place, and never share your information. Tools like Trezor or Ledger are popular options.