Self Custody First: The Safest Way to Own Crypto

Crypto only makes sense if you control the keys. When someone else holds your coins, you are trusting their security, their solvency, and their rules. That might work for a while, but it turns a permissionless asset into a promise. Self custody keeps ownership simple. You create a wallet, you hold the keys, and you decide when and where your money moves.

Blacksheep is built around that idea. Blacksheep is designed to avoid needing to hold your crypto assets with a third-party and we do not hold our customer's crypto assets. You buy or sell through Blacksheep, and the crypto moves directly between your wallet and Blacksheep's. No pooled balances. No waiting for withdrawals to open. Our role is to make the on ramp and off ramp fast, clear, and safe while you stay in control from day one.

Custodial vs self custody in plain English

Custodial means someone else holds your coins for you. You get a login and an account balance, but the keys sit with the custodian (such as an exchange platform). If they are hacked, pause withdrawals, or go insolvent, you must wait to gain access to them. In a worst case scenario, you may lose access to your assets forever. Self custody means you hold the keys in a wallet you control. There is no ticket to raise and no withdrawal queue. You sign transactions and the network confirms them.

Both paths have trade-offs. Custodial can feel convenient, but you inherit counterparty risk and the platform’s rules. You must trust that the custodian will keep your assets safe on your behalf, and depending on the T&Cs, if they don't, you may not have any way to get compensation at all. Self-custody asks for a few simple habits like good backups and a test restore, but the risk is in your hands and it is manageable.

Blacksheep exists for this second path. We connect your bank and your wallet so you can buy and sell without handing your coins to us or anyone else.

The safe self custody stack

Self custody rewards care at the start. Most horror stories come from simple mistakes like a photo of a seed in the cloud, a cheap walletdevice from a random seller, or backups stored in a garage cupboard that gets flooded. A clean setup takes an hour and then protects you for years.

Goal: get a wallet you control, with backups that actually work.

1. Buy a hardware wallet from an official source. Avoid marketplaces. Check the box is sealed.
2. Set up offline on a clean computer. Update firmware, then generate a new wallet.
3. Write the seed phrase by hand. No photos, no cloud, no screenshots. Use pen and paper or engrave on a steel plate.
4. Create two backups. Store in separate places that are dry, private, and not the same building.
5. Label accounts clearly. Spend, Save, Long term. Keep life savings off your phone.
6. Do a test restore. On a spare device or a temporary wipe, restore from the seed and passphrase. Confirm the same addresses appear.
7. Do a small test send. Move a tiny amount in and out to prove it all works.
8. Lock in hygiene. Keep firmware updated, verify URLs, and review token approvals if you use EVM chains.
9. Maintain a dedicated device: Keep one device for strict crypto use, no web browsing, work or gaming.

Where Blacksheep fits: you buy to your wallet and sell from your wallet. We never hold your coins. The on ramp and off ramp are fast and simple while you stay in control the entire time.

Using Blacksheep with your wallet

Blacksheep connects your bank and your self custody wallet. We do not hold balances. You buy straight to your address and you sell straight from it. The flow is simple and you stay in control the whole time.

How buying works

1. Choose the asset and amount.
2. Link the wallet you want to receive the crypto after purchase.
3. Pay from your bank into your Blacksheep account.
4. Once you have a fiat balance on Blacksheep, confirm your crypto purchase.
5. The network confirms and the coins land in your wallet.

How selling works

1. Choose the asset and amount.
2. Send from your wallet to the provided address.
3. We settle the trade and send AUD to your linked bank account.

We may temporarily hold AUD to complete settlement. We never hold your crypto.

Good habits for smooth transfers

• Do a tiny test send the first time you use a new address.
• Double check the network matches your wallet.
• Watch for the confirmation in your wallet app.
• Keep your device and wallet app updated.

What we never do: hold your coins, pool customer funds, or co sign transactions. Our role is a clean on ramp and off ramp so you can move between fiat and crypto without giving up control.

Security hygiene that removes 90% of risk

Most losses come from simple traps. They come from rushed clicks, sloppy logins, and links that looked legit. A few steady habits make you meaningfully safer without turning crypto into a chore.

Daily habits

• Type URLs yourself. Bookmark official sites. Ignore links in DMs.
• Verify addresses character by character. Use a test send for first time transfers.
• Use a password manager to avoid lookalike sites and to create strong uniques.
• Turn on app based 2FA for exchanges you still use. Avoid SMS where possible.
• Keep your phone and computer updated. Restart weekly to clear junk processes.

When you sign a transaction, slow down for five seconds. Read the prompt. If something asks for unlimited spend and you do not know why, step back and check.

Wallet hygiene

• Keep life savings in a hardware wallet. Use your hot wallet for small spends only.
• Review token approvals on EVM chains and revoke anything you do not recognise.
• Read prompts. If the signer asks for unlimited spend, ask yourself why.
• Do not store seeds or passphrases digitally. No photos, notes, or cloud backups.
• Update firmware and wallet apps from official sources only.

Phishing thrives on urgency. Real support will not ask for your seed or remote access. If your gut twinges, it is fine to stop, breathe, and ask someone you trust.

Phishing and social tricks

• Assume urgency is a trap. Real support will not ask for seeds or remote access.
• Do not scan random QR codes. Treat them like links from strangers.
• If you are unsure, stop and ask someone you trust. Waiting is safer than guessing.

Devices and recovery

• Keep two clean backups of your seed in separate places. Test a restore once.
• Label accounts clearly. Confusion is a risk during stress.
• If you suspect compromise, move funds to fresh wallets from a clean device.

Follow these and you remove the easy wins for attackers while keeping your setup simple.

Backup, recovery, and inheritance

Backups are not about paranoia. They are about future you having a calm day when something breaks, gets lost, or needs to be handed to someone you love. Do it once with care and you can forget about it for years.

Backups that work

• Write the seed phrase by hand. Use pen on paper or a steel plate.
• Make two copies and store them in separate places that are dry, private, and not the same building.
• If you use a passphrase, write it down and store it separately from the seed. Treat it like a second key.
• Do not take photos or store seeds in notes, email, or cloud drives.

A backup you have not tested is a story you hope is true. Prove it once and take the fear away.

Recovery drill

Do this on a clean device when you are not in a rush.

• On a clean device, reset the wallet and restore from your seed and passphrase.
• Check that the same addresses appear.
• Send a tiny amount in and out to prove you can move funds.
• When done, wipe the test device. This fifteen minute drill turns fear into confidence.

If you suspect compromise

• Stop using the device.
• Create a fresh wallet on a clean computer or hardware device.
• Move funds across in small batches, starting with the largest balances.
• Review approvals on EVM chains and revoke anything you do not trust.

Simple inheritance plan

Keep language plain so a non technical person can follow.

• Decide who can access funds if something happens to you.
• Store clear, sealed instructions that explain what the seed is, where the backups are, and which wallets matter.
• Split knowledge and location. One person can hold location A, another person holds location B.
• Use plain language and sensible names for accounts so a non technical person can follow.

Backups, a short recovery drill, and a basic inheritance plan cover almost every painful scenario. Do them once and you can focus on living rather than worrying.

Keep a record for tax purposes

Self custody means you are the source of truth. Clean records make tax time simple and give you confidence if you ever need to check a past move. This is general information only. Speak to a professional for advice on your situation.

Easy record habits
Pick a simple system and stick to it.

• Use one wallet per purpose where possible. Label them Spend, Save, Long term.
• Export CSVs from any exchanges or services you still use.
• Keep a log of buys, sells, swaps, transfers, and fees with date, asset, amount, tx hash, and AUD value.
• Store receipts in one folder and back it up.
• Consider a crypto tax tool to reconcile cost bases and income.

‍FAQ

• What if I lose my seed? Funds cannot be recovered. Create two backups now and do a test restore once so you know it works.
• Can Blacksheep recover my coins? No. We never hold balances or keys. That is the point of self custody.
• Which wallet should I choose? A reputable hardware wallet for savings, a well known hot wallet for small spends. Buy devices from official stores.
• How do I move off an exchange safely? Withdraw a tiny test amount to your wallet, confirm it arrives, then move the rest. Check the network matches your address type.
• What if a hardware wallet brand disappears? Your seed follows standards. You can restore on another compatible wallet if you have the seed and any passphrase.

Disclaimer: This information is provided by Blacksheep Operations Pty Ltd ABN 16 674 111 392 for general informational purposes only and may refer to products not available in your location. It does not constitute (i) investment advice or a recommendation to invest; (ii) an invitation or solicitation to buy, sell, or hold digital assets; or (iii) financial, legal, accounting, or tax advice. Digital assets, including stablecoins and NFTs, are highly volatile and carry significant risks. You should carefully assess your financial situation before deciding whether to trade or hold such assets. For advice specific to your circumstances, please consult your legal, tax, or investment adviser. All data and statistics are provided solely for general information. Blacksheep Operations accepts no responsibility or liability for any errors or omissions in this information, nor for any use of or reliance upon it by others.