The individual is both the generator and the consumer of their own wealth, meaning that the entire process of wealth creation, management, and consumption begins and ends with the individual. Unlike larger entities, such as organizations or network states, where wealth can be distributed across multiple roles or shared systems, the individual is entirely self-reliant. They alone are responsible for generating the value they possess, whether through labor, knowledge, or creativity, and they are solely accountable for how that value is stored, accessed, and ultimately used.

The essence of self-custody for an individual is in balancing the protection of high-value assets with the ease of access to lower-value, high-frequency assets. High-value assets, which are infrequently transferred or accessed, must be stored in a highly secure environment, often referred to as cold storage. Cold storage allows for maximum security by keeping assets offline and inaccessible to external threats, ensuring that they remain protected from loss or compromise.

On the other end of the spectrum, an individual also needs hot storage for assets that are of lower value but are frequently accessed and transferred. Hot storage offers convenience and speed, allowing for seamless transactions in day-to-day activities. This form of storage may be less secure than cold storage, but its primary function is to provide accessibility and fluidity for frequent transfers of low-value assets.

In the simplest terms, the individual is both the generator and the consumer of their own wealth. They must manage this wealth through cold storage for long-term, high-value assets and hot storage for short-term, low-value assets. This dual system of storage allows the individual to maintain both security and convenience, which are vital components of effective self-custody.