Self-Custody:
Expertise
Privacy
Guidance
With a human touch.
Self-Custody and Cold Storage
Self-custody refers to the practice of individuals directly controlling and safeguarding their own cryptocurrency assets, typically through the management of private keys. It involves storing these private keys securely without relying on third-party custodians such as exchanges or wallets. Self-custody grants individuals full control over their funds, enhancing security and privacy.
Cold storage, is a method of custody that involves storing your private keys offline, disconnected from the internet. This is done to minimize the risk of online hacking or unauthorized access. Cold storage options include hardware wallets, paper wallets, or other physical storage devices that hold the private keys offline. Cold storage is considered a highly secure method as it protects against online threats and provides an additional layer of protection for long-term asset storage.
Why Do I Need Self-Custody, Aren’t Exchanges Safe Enough?
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Freedom
Crypto self-custody, particularly with Bitcoin, enhances financial freedom by allowing individuals to seamlessly transport their wealth across any distance. Unlike gold or fiat currencies, self-custody enables cross-border transactions, facilitates economic migration, provides access to financial services in underserved regions, and ensures financial sovereignty by granting individuals complete ownership and control over their assets without reliance on intermediaries or centralized authorities. This empowers individuals to participate in the global economy and make independent financial decisions, regardless of their physical location.
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Safety
Roughly $2B was lost during the FTX scandal due to rehypothecation of customer assets. Self-custody provides individuals with a powerful shield against potential corruption or mishandling of funds, as demonstrated by the recent incidents involving companies Voyager, Celsius and Binance. By taking control of your private keys and securely storing your Bitcoin, users eliminate the reliance on third-party custodians and minimize the risk of unauthorized access or mismanagement. This direct ownership and control over their assets ensure a higher level of security, transparency, and protection against external vulnerabilities all the while giving financial power back to the people.
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Privacy
Self-custody plays a crucial role in enhancing privacy for cryptocurrency holders. When individuals store their Bitcoin using self-custody solutions, they have greater control over their personal information and transactional data. By utilizing techniques such as generating new addresses for each transaction and avoiding reliance on centralized exchanges or custodians, self-custody users can minimize the exposure of their financial activities to external parties. This reduces the risk of data breaches, surveillance, or unwanted profiling by third parties. Self-custody empowers individuals to maintain their financial privacy by keeping their transactions and identities more decentralized and difficult to trace or associate with personal information.
