What are some downsides to self-custodying bitcoin?

Self-custody, especially using a multisignature (multisig) setup, is widely considered the gold standard for securing your bitcoin. However, it can be cost prohibitive and requires technical expertise & strong personal accountability. Mistakes like losing keys or misconfiguring your setup can result in loss of funds.

For those who find these barriers too high but don’t want to rely on a centralized exchange, Fedi offers an alternative: an anti-fragile "second-party" custody solution. It federates the safeguarding of assets across multiple individuals—outsourcing key management & cost while eliminating single points of failure.