Can self-custody be something discouraging for new people in bitcoin?

[mindrust]

It probably has that kind of effect on people. Especially the old people are afraid of crypto because of that. Some people don’t like to own responsibilities. They just want things get handled for them and they might be right btw. Not everyone understands tech perfectly or maybe they have other issues which prevent them from learning these stuff. (Like medical conditions or maybe a disabled family member who knows) or maybe they just want to enjoy the life and leave their wealth’s management to the professionals…

In anyway, “great power comes with great responsibility” like a wise man once said. Another one said: “no pain no gain.”

Meaning, you can’t win the lottery if you don’t buy a ticket.

[Ambatman]

The System has made it that many don't trust themselves with taking custody of their funds
So the man can't be blamed.
Self custody is not easy
Having a gun and not even knowing how to use or pull the trigger isn't protection.
If you can't take care of your Bitcoin or not even ready to try/ gain the knowledge to
Then there's no need in holding Bitcoin.

[348Judah]

Can self-custody be too difficult to practice by a crypto investor?

Self-custody is the best way of holding our digital asset, we shouldn't mind on the process involved, all we may have to focus on is the way forward from using it and how to achieve its best utility, except maybe for a newbie who is not aware of this and was not been informed about the difference that lies between a custodial wallet and a non-custodial wallet, but as for any experience user, they have no excuse from using it except they want to risk it.

[Stalker22]

Self-custodying your crypto coins is a big responsibility, no doubt.  You gotta be the bank, the vault, and the security guard all in one.  But I think anyone can get the hang of it if they try.  Theres lots of stuff out there - videos, tutorials, forums - to help you get started. You can use hardware wallets for extra security. Or if you know your way around tech, you can make your own wallet on an air-gapped device. Either way, self-custody is the most secure way to hold your crypto, imho.

But again, as others here seem to be saying, why not just use a broker or app? That's actually what most holders of Bitcoin do these days.

Self-custody is a niche product in the same way that people using a personal home safe is to hold large amounts of physical cash. Sure, some people like to keep their life savings physically within a few feet of them, but 99% of people just use a bank etc.

But I completely disagree. Self-custody is not a niche product and I dont think that most holders nowadays use a broker to hold their bitcoins. As for apps, it can still be self-custody (it usually is). Some of the most popular bitcoin wallets (besides Bitcoin Core) are still self-custody, like Electrum for example.

The problem with brokers and exchanges is that they are centralized entities. This means that they are vulnerable to hacks, scams, and government regulations. If a broker or exchange goes bankrupt or is hacked, you could lose your funds.

With self-custody, you are the only one who has control over your funds. This is the basic idea behind the entire Bitcoin and blockchain technology. Not a niche product.

[Saint-loup]

Can self-custody be too difficult to practice by a crypto investor? Because I spoke to somebody about bitcoin and the person responded by saying that they are not too sure that they can trust their self to keep their investment safe because of their careless nature, and this got me thinking because can I call this person being very sincere or the person is just afraid to try.
Everyone should be in-charge and control of their bitcoin investment, and if somebody knows that they cannot practice self custody then I don't believe that bitcoin should be what they are investing in because it is simply not safe for someone else to be helping you manage your investments in bitcoin.

Your friend seems to be very well conscious of himself and of its own faults, and you should respect his personality IMO. If he prefers trusting someone else for that, or a company why does it matter in the end? It's not without risks to hold funds yourself, you can easily lose your access to them, like many people have done or being stolen by a hacker or someone close to you with what we call an evil maid attack for example. So if some people prefer to delegate those risks and management, it's their own business after all I think.

[Ale88]

Can self-custody be too difficult to practice by a crypto investor? Because I spoke to somebody about bitcoin and the person responded by saying that they are not too sure that they can trust their self to keep their investment safe because of their careless nature, and this got me thinking because can I call this person being very sincere or the person is just afraid to try.
Everyone should be in-charge and control of their bitcoin investment, and if somebody knows that they cannot practice self custody then I don't believe that bitcoin should be what they are investing in because it is simply not safe for someone else to be helping you manage your investments in bitcoin.

I think yes, it is something discouraging for some people, at the end we are talking about managing your own money and if you make a mistake you could potentially lose everything and usually there is no way to get it back. It's not something that everybody is willing to do. And I can understand this point of view, at the end bitcoin is not for everybody.

[legiteum]

But I completely disagree. Self-custody is not a niche product and I dont think that most holders nowadays use a broker to hold their bitcoins.

Based on the hundreds of billions of dollars stored in the major brokers like Coinbase, Binance, and so many others, I think the evidence is strong that most Bitcoin today is held by professional organizations in the business of holding people's Bitcoin.

As for apps, it can still be self-custody (it usually is). Some of the most popular bitcoin wallets (besides Bitcoin Core) are still self-custody, like Electrum for example.

By "apps" I meant things like PayPal, Robinhood, and many others.

The problem with brokers and exchanges is that they are centralized entities. This means that they are vulnerable to hacks, scams, and government regulations. If a broker or exchange goes bankrupt or is hacked, you could lose your funds.

And with self-custody you can physically lose if (landfill), it can be stolen, or you can be tortured until you give up your keys and then killed afterwards. There's no "perfect" solution, but for the last 100 years or so, most consumers have relied on others to guard their money, and I really don't see people changing their behavior in this way.

With self-custody, you are the only one who has control over your funds. This is the basic idea behind the entire Bitcoin and blockchain technology. Not a niche product.

Whether it's a niche product or not doesn't depend on what you want or what Satoshi designed Bitcoin to do originally, it depends on the actual market numbers as of right now. I think there's strong evidence that most Bitcoin, in terms of volume, is held by professionals, not individuals. And of course there's the ETF.

Most people view Bitcoin as a simple investment, not a political cause.

[nakamura12]

Self-custody is what many people prefer instead of using broker. There are some risk indeed when it's a self-custody because if you lost the important things then there's a chance that you won't be able to recover your funds compared to having brokers but having brokers also have risk. If a person prefers trusting someone else then you should just let that person do it but don't forget to explain to that person about the advantages of self-custody and how to keep it safe.

[crwth]

We all know that self-custody is the best way to protect your assets and maybe even level up with having a hard wallet on your own. I think new people in crypto would have a hard time learning it if they have less technical knowledge in the subject. Managing keys or knowing what not to do if someone encounters a possible phishing attempt is already a skill in itself.

Understanding a person's limits might help, and the convenience of doing it would probably be the factor.

In my experience, it's hard to teach someone who isn't very tech-savvy how to do this. They must know the risks.

[alastantiger]

Everyone should be in-charge and control of their bitcoin investment, and if somebody knows that they cannot practice self custody then I don't believe that bitcoin should be what they are investing in because it is simply not safe for someone else to be helping you manage your investments in bitcoin.

It's not safe for anyone to be managing your investments in anything and not just Bitcoin. People managing your investments are making money from you and you're not getting a fair share of the profits that they're getting. Haven't you noticed that any company incharge of managing people investment are always worth millions of dollars and this is because they have access to the money and they can use it to do other investments without you knowing to make more money for their company and not you. Bitcoin teaches you how to be incharge hence it's something that everybody can do. People thinking they can't handle Bitcoin are forgetting that the can hodl Bitcoin in a paper wallet and forget about it for some years but they have to keep the private key to the wallet in a safe place so they won't forget and as far people don't know they're into Bitcoin, it's safe by keeping the private key written out.in a safe.

[PrivacyG]

I mean.  We are all used to Institutions and Businesses often helping us out and doing most of the work for us.  To have complete control for the first time, it is dubious and I would expect a repulsive initial answer from new comers.

However.  Once you mess with Bitcoin a few times and you get how it works, it becomes impressively easy to use and you can not not fall in love with the system.  All it takes is just this.  Bitcoin is probably easier to understand than learning to ride a bike.  And most important of all, the reward you get for the basic learning curve how Bitcoin works is always going to be worth it.

[Zaguru12]

We all know that self-custody is the best way to protect your assets and maybe even level up with having a hard wallet on your own. I think new people in crypto would have a hard time learning it if they have less technical knowledge in the subject. Managing keys or knowing what not to do if someone encounters a possible phishing attempt is already a skill in itself.

Understanding a person's limits might help, and the convenience of doing it would probably be the factor.

In my experience, it's hard to teach someone who isn't very tech-savvy how to do this. They must know the risks.

I will like to disagree that it is very difficult to actually teach someone who is a tech savvy how to simply store bitcoin on wallet, if it is that difficult then I will simply say even storing bitcoin on exchanges too are a hard task to do too. But none of them are actually that difficult execute most especially the storage of bitcoin on hot wallets. The whole processes is actually a thing a thing that anyone who gets an explanation can understand, the most important is how the keep or safeguard the private key or seed phrase which is also not a tech savvy thing. The only thing which is a little technically required is when trying to actually send out from the wallet and that two a simple guide can put on through.

Personally I feel the reason why some people trust the custodial services are Simply because they are scared that they will mess up the storage themselves and prefers others to help them which is totally against cryptocurrency most especially bitcoin storage as it wants you to be your own bank

[Alone055]

Can self-custody be too difficult to practice by a crypto investor? Because I spoke to somebody about bitcoin and the person responded by saying that they are not too sure that they can trust their self to keep their investment safe because of their careless nature, and this got me thinking because can I call this person being very sincere or the person is just afraid to try.
Everyone should be in-charge and control of their bitcoin investment, and if somebody knows that they cannot practice self custody then I don't believe that bitcoin should be what they are investing in because it is simply not safe for someone else to be helping you manage your investments in bitcoin.

It's not out of disrespect or anger or anything like that, but I would say Bitcoin and cryptocurrencies are not for such people. Honestly, if someone thinks they can't manage their own money or investments, they are better off using centralized services such as banks to keep their assets and allow them to make investments on their behalf and keep all the profit and give them peanuts in return for using their money for those investments.

If someone grows up, becomes an adult, and it's already time for them to start their practical life, they can't say that they are too careless to be able to manage their assets or investments and if they do say such things, they need to understand that it's time for them to literally grow up. The world has reached new heights, and some people are still playing video games and eating snacks sitting on their couch all day saying they are too careless to do something for themselves. No offense to gamers, what I'm trying to say is that someone shouldn't waste all their time and think about doing something as soon as possible before it's too late in life.

[Davidvictorson]

Can self-custody be too difficult to practice by a crypto investor? Because I spoke to somebody about bitcoin and the person responded by saying that they are not too sure that they can trust their self to keep their investment safe because of their careless nature, and this got me thinking because can I call this person being very sincere or the person is just afraid to try.

Yes there  are people who can practice self custody for several reasons. Therefore the caution of keep your coins out of the exchanges is not for them. I completely agree with you that we should all be involved in keeping our bitcoins. I think that that is why ETFS came up and that their preference over self custody.

I also think that  Bitcoin is not for everyone because some people can not fathom changing their old ways for the new one. That is their openness to new experience is close to nothing..

[SickDayIn]

Honestly no. Given how cheap and affordable a physical wallet like Trezor or Ledger is. Just pay the $50-100, get the physical wallet and then HODL with self custody.

[X-ray]

some people just don't bother learning the ins and outs about self custody, also the learning curve might be steep if we really care about security but honestly, just generating an address and saving it in a paper wallet is easy, if we don't want to care about the ins and outs of security while still trying to self custody we can always use hardware wallet. but despite this, some people just consider learning about a little thing like this to be a pain. even more so for people who aren't really used to technology. so it's understandable.

the thing is, the news about hacker stealing BTC is enough to intimidate many people into thinking that they are just insufficient in term of knowledge to manage their own money, so they decide to just use exchanges's custody.
this self depreciation is the problem I think, where people think self custody have so much thing they need to care about that they feel they just can't do it.

[SickDayIn]

some people just don't bother learning the ins and outs about self custody, also the learning curve might be steep if we really care about security but honestly, just generating an address and saving it in a paper wallet is easy, if we don't want to care about the ins and outs of security while still trying to self custody we can always use hardware wallet. but despite this, some people just consider learning about a little thing like this to be a pain. even more so for people who aren't really used to technology. so it's understandable.

the thing is, the news about hacker stealing BTC is enough to intimidate many people into thinking that they are just insufficient in term of knowledge to manage their own money, so they decide to just use exchanges's custody.
this self depreciation is the problem I think, where people think self custody have so much thing they need to care about that they feel they just can't do it.

You make a very good point. I think the reason people fear self custody is because they think it's technically complicated and they probably only think of having a hot wallet on a GUI software on their computer, which agreed isn't a safe location to store crypto long term. However in recent years we have seen more and more exchanges be compromised, so the notion that storing their holding with an exchange is safer and easier, is a false sense of assurance. So much easier to just buy a hardware wallet.

[legiteum]

I mean.  We are all used to Institutions and Businesses often helping us out and doing most of the work for us.  To have complete control for the first time, it is dubious and I would expect a repulsive initial answer from new comers.

However.  Once you mess with Bitcoin a few times and you get how it works, it becomes impressively easy to use and you can not not fall in love with the system.  All it takes is just this.  Bitcoin is probably easier to understand than learning to ride a bike.  And most important of all, the reward you get for the basic learning curve how Bitcoin works is always going to be worth it.

So what. Most people can be taught to use a floor safe, too. That doesn't mean people will start pulling their life savings out of the bank and putting physical cash in their own homes.

There's nothing wrong with using a company to help you guard your wealth.

[ancafe]

Can self-custody be too difficult to practice by a crypto investor? Because I spoke to somebody about bitcoin and the person responded by saying that they are not too sure that they can trust their self to keep their investment safe because of their careless nature, and this got me thinking because can I call this person being very sincere or the person is just afraid to try.
Everyone should be in-charge and control of their bitcoin investment, and if somebody knows that they cannot practice self custody then I don't believe that bitcoin should be what they are investing in because it is simply not safe for someone else to be helping you manage your investments in bitcoin.

The level of security in maintaining investment must be based on the ability of each individual in managing and that must be a basic concern before everything goes further. People will never care how we save bitcoin in a place that is much safer or not and people never want to know how our involvement is bitcoin has gone through a right or wrong process. So every decision regarding investment must be carefully thought out and regarding the level of security of the asset will be an custody of itself that needs to be maintained.

Generally people will learn from mistakes that have been made but if they talk about assets that involve a lot of money, it should be more selective and not let something unwanted. Security priority is very important because it must be done in the right way and not left to run so.

[BlackBoss_]

Can self-custody be too difficult to practice by a crypto investor?

It can be difficult for Bitcoin and cryptocurrency investors when they hear about it the first time and they have yet lost money by any centralized exchange by either of following reasons: scam exit, exchange hack, exchange death, exchange bankruptcy.

When they experienced it with their own capital, lost their capital, they will no longer see that using a self-custodial (non-custodial) wallet is too difficult in practice.

The challenge is whether they see it is important for their fund safety, and whenever they see this importance, they will learn and use non custodial wallets (also need to be open source) for storing their bitcoin and cryptocurrency.

Exchange graveyard https://www.cryptowisser.com/exchange-graveyard/
Report on Crypto Exchange Hacks https://cointelegraph.com/magazine/crypto-exchange-hacks/