What are the risks associated with self-custody of cryptocurrencies?

3 answers

• May 03, 2022 · 3 years ago
  Self-custody of cryptocurrencies can be risky due to the potential for loss or theft. If you store your cryptocurrencies on your own device or hardware wallet, there is a risk of losing access to your funds if you forget or lose your private keys. Additionally, if your device is compromised or hacked, your funds can be stolen. It's important to take proper security measures and backup your private keys to minimize these risks.
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• May 03, 2022 · 3 years ago
  When you self-custody your cryptocurrencies, you are solely responsible for the security of your funds. This means you need to be extra cautious and ensure that you have a secure storage solution in place. It's also crucial to stay updated on the latest security practices and be aware of potential phishing attempts or scams that could compromise your funds.
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• May 03, 2022 · 3 years ago
  Self-custody of cryptocurrencies allows you to have full control over your funds without relying on a third party like BYDFi. While this can be empowering, it also means that you bear the full responsibility for the security of your assets. It's important to educate yourself about best practices for securing your cryptocurrencies and regularly update your security measures to stay ahead of potential risks.
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