What are the advantages and disadvantages of self-custodying your cryptocurrencies?

3 answers

• SafiJan 29, 2023 · 2 years ago
  Self-custodying your cryptocurrencies provides you with full control over your assets. You don't have to rely on third-party custodians, which reduces the risk of hacks or thefts. Additionally, self-custody allows you to maintain your privacy and anonymity, as you don't have to disclose personal information to a custodian. However, self-custody also comes with responsibilities. You need to ensure the security of your private keys and take measures to protect your assets from loss or theft. It requires technical knowledge and can be time-consuming to set up and manage your own wallet or hardware device.
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• amiRRezaAug 07, 2024 · a year ago
  Managing your own cryptocurrency assets gives you the freedom to transact without any restrictions. You can send and receive funds at any time without relying on a third party. Self-custody also eliminates the risk of losing your assets if a custodian goes bankrupt or shuts down. However, self-custody requires you to be responsible for the security of your funds. If you lose your private keys or forget your wallet password, you may permanently lose access to your cryptocurrencies. It's important to have backups and follow best practices for securing your assets.
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• Michael PoulosJan 03, 2025 · 6 months ago
  At BYDFi, we believe that self-custody is the best way to protect your cryptocurrencies. By managing your own assets, you have full control and ownership. You don't have to worry about the security of a centralized exchange or custodian. However, self-custody also requires you to be vigilant and take necessary precautions. Make sure to use reputable wallets and hardware devices, enable two-factor authentication, and keep your private keys offline. It's important to educate yourself about the risks and best practices of self-custodying before making a decision.
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