What are the risks associated with self-custody of crypto assets?

3 answers

• Nov 28, 2021 · 3 years ago
  Self-custodying your crypto assets can be risky as it puts the responsibility of securing your funds solely on you. If you're not well-versed in cybersecurity and best practices for storing crypto, you may be vulnerable to hacks and theft. It's crucial to have a strong understanding of wallet security and use hardware wallets or cold storage options to minimize the risk of losing your assets.
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• Nov 28, 2021 · 3 years ago
  When you self-custody your crypto assets, you become your own bank. While this gives you full control over your funds, it also means that you're solely responsible for keeping them safe. If you lose your private keys or make a mistake during a transaction, there's no central authority to help you recover your funds. It's important to be cautious and take necessary precautions to avoid any irreversible losses.
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• Nov 28, 2021 · 3 years ago
  Self-custodying your crypto assets can provide you with a higher level of privacy and control. However, it's important to note that if you forget or lose your private keys, there's no way to recover your funds. This is why it's crucial to have a secure backup of your keys and store them in a safe place. Consider using a hardware wallet or a secure offline storage option to minimize the risk of losing access to your assets.
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