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Does changing your account to self custodial require you to operate a node?

No, learn the difference between a Bitcoin Node and a Lightning Network Node, they are different things

Will it reduce the liquidity and reliability of your coinos wallet by going self custodial?

You'll still use coinos Lightning Node to provide you inbound and outbound liquidity

Thanks I am going to try to look into this after work tomorrow.
Might be worth trying it out if it gives more direct custody and still low fees and ease of use.

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