Ledger Controversy is a risk to our Crypto Holding
People used to rely more on hardware wallets because so far this has been the safest method to hold our crypto coins but now seems the situation is going to be different. If our hardware wallets are not secure enough and if the companies have controlled the funds then for sure it is a situation that is not good for all of us. We cannot rely on any company or third party that can get access to our holding in the wallet and This is why hardware wallets were considered the best method so far however now it is difficult to say whether it is safe or not.
Ledger launched a subscription service for recovery and they have shared that this way they can get access to the coin which is an alarming situation I believe because if we choose to opt for the service then we are also putting our crypto at risk. If we choose not to opt for it then also recovery will not be possible so in this scenario I believe the manufacturer has to stop the options which can give them access. If this will happen then for sure people will not opt for the hardware wallet because this is a threat to our crypto holding. This does not try for decentralization in the crypto market as someone has access to it in any form which is not good at all.
The $9-per-month subscription service requires users who opt-in to the service to provide their identification per KYC guidelines. The tool would then encrypt their private keys into three pieces and send them to three different companies: Ledger, Coincover, and EscrowTech. The three companies would then use that KYC information to verify wallet holders when they want to use the recovery tool.
Technology is built to make things better and safer for us but if this is also used to create a thread for funds or even to make things worse for the people then it is better to stay away from it hence I believe it is not a good idea to go for this subscription which can create a lot of issues later on. We ultimately believe that not your key, not your crypto means we have to ensure that keys are kept safe and it is our responsibility because we cannot rely on a third party for any type of recovery. Before entering the crypto market we also need to keep ourselves clear with the object that if we lose the key then we are also losing access to the crypto so to avoid this situation we must follow all the required protocols so that we do not fall in this type of situation ever.
If we can give access to any third party then what is the point of buying an expensive hardware wallet rather we can go with the exchange wallet because there we get the option for recovery as well as the exchange also has access to funds. These hardware wallets are expensive and people go for it because they believe these are the safest options available in the market and so far we have not heard any hacking story in which hardware wallet was involved.
In my opinion, it is never a good idea to opt for any service that can enable the access ability of our funds to any third party hence the best practice would always be to avoid such products and services. With the recent statement by the ledger company, the controversy has started and I believe now this will also be an eye opener situation for people in the crypto market. I would not go for any service which will make things difficult for me later on rather I am OK to lose access if in case something goes wrong rather than going for a service that is charging me on a subscription basis but also gives access to a third party.
I also heard about the paper wallet but do not know how it works and even the noncustodial wallets are not that secure because sometimes things can go worse. There have been some incidents in the past where people lost their funds from the wallets like meta mask which is a non-custodial wallet. Overall we can say that it is hard to say which one is the best option to hold our crypto including the noncustodial wallets or even the hardware wallets. So think before you choose the one for keeping your crypto because it is your money and you need to ensure its safety.
*Thank you so much Stay Safe
Posted Using LeoFinance Alpha
