Custodial Comforts in Crypto Can Be Dangerous
Hey Jessavers
Having been around these here parts for going on five years, I've made my fair share of fuck ups and mistakes. I lost a tonne of money and will continue to do so as I learn how to be my own bank.
- No one said it was going to be easy,
- No one said it was going to be fun
- No one said you're not going to lose money
Taking this level of personal responsibility means you have to be vigilant, and you cannot take anything for granted. You need to constantly learn about new ways your security can be improved, constantly check your keys are in order and manage everything yourself.
Sure, you can start to find investment services like Unchained Capital and Casa that can help you safely store your keys, but not everyone has that much Bitcoin or that much money to put into Bitcoin yet. So those services may be a stretch for many.
I can totally see the reason for not wanting to manage your money because you're a paper handed noob that's going to get rekt, but some people are not technically ready to handle it. It comes with time; as I said, it took me five years to get my security together, and I still have additional layers to add.
Custodial services for saving
We've all been lulled into a false sense of security as we use the fiat banking system. We are used to 3rd parties assuming liability and for us to never have to consider our security. This leads to us never developing the skills to secure our own assets and become slaves to these services.
Having been hacked and losing 0.1 BTC on an exchange, I know painfully well how little these companies care about you or your funds. They hide behind a grey area where they are not banks but want to custody your crypto; it's a grey area you don't want to play in, especially as the value you hold on these service increases.
As you give over responsibility, you reduce scepticism, you lower your guard, and you leave yourself open to attacks. I recently received an SMS from a phishing scam; somehow, they got my data and figured out that I use a certain exchange, and then SMS'd me.
The moment I saw the text, I laughed and took a screen shot before deleting it, but others who don't have a well-calibrated bullshit detector can easily fall for these scams.
Luno phishing scam
Take ownership of your assets
Bitcoin is the first time anyone can take custody of their bearer assets; it's a powerful statement and worth the cost, in my opinion. If you still have a fiat mindset, I get it you want to sell for more fiat, keep it on an exchange and shit coin if you want.
I am not talking to those people; I am talking to those who actually want to see Bitcoin amplify their wealth and give them a chance at building their future. Those with a low time preference and are open to the journey Bitcoin provides.
To those I say,
- start looking at cold storage,
- start learning how to set up custodial wallets
- start looking into setting up an Xpub
- start looking into securing your seed phrases correctly
- start looking at splitting your Bitcoin across multiple wallets
This is your time, your labour and your future purchasing power you're putting on the line, so why spare an expense on making sure you have the best security you can find.
Don't say you weren't warned! Leave your money on exchanges, and you leave an opportunity for your future self to enjoy being poor!
Have your say
What do you good people of HIVE think?
So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
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