Crypto for Advisors:The hidden costs of holding your own bitcoin

Self-custody of bitcoin can introduce hidden costs beyond the asset’s purchase price, including security hardware, backup procedures, transaction fees, time, and the risk of irreversible loss from mistakes or compromised credentials. These responsibilities may make self-custody more complex and expensive than many investors anticipate, particularly for clients without strong operational or technical expertise. The key implication is that advisors should evaluate custody options based on total risk and cost—not just control—when determining the most suitable bitcoin exposure.