Time for some real talk 🙏
As time goes on I’m noticing that the things that make cryptocurrency different from the current financial system are starting to fall by the wayside.
One of these things is custody – the ability to hold your own assets, something that you can’t do in the current financial system.
Cryptocurrency makes self-custody easy, but it also reveals just how important it is to be responsible. If you lose your private keys or send your cryptocurrency to the wrong wallet address, there’s no customer support, no refunds, no Ghostbusters you can call (so to speak).
This is why you should consider doing joint custody if you have a lot of crypto. This is where there are other people besides you who hold the private keys to your crypto wallet. This can be a bit scary which is why you must always have people you trust as keyholders, or better yet, an institution.
Third party crypto custody is the kind of crypto custody that’s not all that different from the current set up we have with the banks. The crypto technically belongs to the company, not to you. The crypto is just there under your name, but sometimes it’s worth the extra security.
That said, not all third party crypto custodians are made equal. “Informal” crypto custodians like exchanges are still susceptible to losses. There’s also a risk that someone at the exchange could run off with your crypto just like numerous exchanges in the past
“Formal” crypto custodians on the other hand give you the same level of security as self custody without the personal responsibility. Even here there’s a tradeoff though, and if you don’t read the fine print in any contract you sign with a crypto custodian, you could find yourself being unable to get that crypto out, or possibly even sell it at all.
So, which crypto custody solution is the best for you? That’s the question I answer in today’s video.
Hope you enjoy it folks!
⛓️ 🔗 Useful Links 🔗 ⛓️
► Best Crypto Mobile Wallets: https://www.coinbureau.com/videos/mob…
► Best Crypto Hardware Wallets: https://www.coinbureau.com/analysis/b…
► Electrum Wallet For Bitcoin Multisig: https://electrum.org/#home
► Gnosis Safe For Ethereum Multisig: https://gnosis-safe.io/
► Crypto Custodians List: https://www.ulam.io/blog/best-crypto-…
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.