CIX FOUNDATIONS · LESSON 01 OF 04
Crypto. Start with Control.
Understand custody, secure your access and check a transfer before you make it.
Know what you control
A wallet is a tool for managing keys and interacting with a network. Your assets are recorded on the network; they are not files stored inside the wallet app. The practical question is who can authorise a transaction.
With a custodial service, the provider controls the keys for the assets it holds. You depend on its security, solvency and withdrawal rules. With self-custody, you control your keys and take responsibility for their protection and recovery. Neither arrangement removes every risk.
Protect access before funding
- Use a unique password for each account and protect the email account used for recovery.
- Use phishing-resistant authentication where the service supports it. Keep recovery methods secure.
- Keep seed phrases and private keys offline and private. Support staff do not need them to help you.
- Check a site's address independently. A sponsored result, direct message or familiar logo does not prove that a page is genuine.
A recovery phrase can restore access to a wallet. Anyone who obtains it may be able to control the assets. Never enter it into a website sent by someone offering help.
Make the transfer a separate decision
Before sending, check the asset, receiving address, network, and whether a destination tag or memo is required. A matching ticker is not enough. Check that both the sending and receiving services support the same network.
Read the receiving service's current minimum deposit and fee information. Where practical, make a small test transfer and confirm receipt before a larger transfer. A successful test helps check the route; it does not remove future errors or other risks.
Read permissions before approving
Connecting a wallet and signing a transaction are different actions. Some approvals allow a contract to spend tokens. Check the spender, amount, network and action before signing. A hardware wallet helps protect keys; it cannot make a harmful transaction safe just because you approve it on the device.
Use official project documentation to find contract addresses and network details. Treat high returns, urgency and requests to bypass normal checks as reasons to slow down.
Your task: a one-page control check
- Choose one asset to research. Do not buy it for this exercise.
- Write its network and the original source used to verify it.
- Describe who controls the keys under the custody method you are considering.
- Describe the recovery process without recording any secrets.
- Write the checks you would perform before a transfer or approval.
If a step is unclear, stop at the research stage. A useful first result is knowing what you still need to understand.
Keep the complete checklist
The free PDF includes additional explanations, a research checklist and worksheets. Read it online below or save a copy. No email address is needed for either option.
The full field guide
Read the complete 11-page PDF here. If your browser does not display it, open or download the PDF.
Sources and context
Original CIX teaching exercises. Educational information, not personal investment advice. Examples are hypothetical; investing and trading can result in losses. Refer to the rules of the specific product and venue.