A survey by Tangem and Protocol Theory shows that crypto users' recognition of self-custody wallets is rising. Respondents prefer to maintain control over their assets rather than fully relying on centralized exchanges or other third-party platforms.
66% consider self-custody important
The survey collected a total of 3,172 responses. The results show that 66% of respondents consider self-custody important, but only 15% actually use hardware wallets. This indicates that market recognition of asset self-custody is growing, but actual adoption still lags significantly.
Additionally, 32% of respondents indicated that hardware wallets are not very relevant to them, suggesting that while many users accept the concept of self-custody, they have not yet viewed hardware devices as essential tools.
- The number of respondents is 3,172.
- 66% consider self-custody important
- 15% actually use hardware wallets
Hardware wallet users more frequently engage in on-chain activities.
Survey results show that hardware wallet holders tend to favor long-term holding over frequent passive trading. However, this group is not conservative; rather, they are among the most active participants in the ecosystem.
They don’t just trade—they directly engage in DeFi, payments, stablecoin management, and Web3 interactions through their wallets. This means users of self-custody tools tend to be more actively involved in on-chain activities, rather than simply holding assets long-term.
Platform events undermine exchange trust
The investigation found that users are turning to self-custody due to frequent issues with trading platforms over the past few years, including events such as the collapse of FTX and the theft of funds from WazirX, which have eroded trust in centralized platforms for some users.
Meanwhile, the exchange continues to face regulatory scrutiny, which may lead to adjustments in how the platform operates. Increased trading fees have also prompted some users to reconsider how they store their assets.
The report notes that users' attitudes often shift significantly once they begin attempting self-custody, as they directly experience greater control over their funds—this is one of the reasons self-custody has regained attention.