Is self custody getting a bit too complicated for beginners?

[HustleZ]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten. Between writing down seed phrases, managing passphrases, and explaining different address types, their eyes completely glazed over.It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges? How do we fix the user experience without sacrificing the whole not your keys, not your coins philosophy?

It’s not that hard mate. The truth is that people want convenience and fast things with alot of benefits but they forget the main thing and that is having control of your own coins. Bitcoin is when put on a centralised exchange then the whole essence of BTC is ruined because that’s not what BTC was made for. It was made to be a decentralised and safer network which gives people full control but a centralised exchange is just like a bank and without the exchange’s consent you cant use your BTC. So to use bitcoin as it was intended to be and keep it safe then these things must be done and not taken too hard because it is really easy.

[Bitcoin-Forever]

Why many are not so mindful of being sensitive to self custody is because they never fall a victim of his centralized platform, these are not wallet but they are only platform account, we entrust our fund with them and the cannot give us the private keys to those coins that belongs to us and we still have the audacity of not making decision to open a non-custodial wallet for our own self and control it.

[MarryWithBTC]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten. Between writing down seed phrases, managing passphrases, and explaining different address types, their eyes completely glazed over.It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges? How do we fix the user experience without sacrificing the whole not your keys, not your coins philosophy?

Privacy comes with a price and anyone willing to have full privacy should be ready to pay the price.

Beginners are so relaxed and reliance on third party custody and even this is what is happened in the larger society.
Most newbies who got into this space got here through heavy centralization. Newbies first get into this space by first registering and completing kyc on centralized exchanges even before they'll get to know about private wallets.

So, the best we can do is to encourage everyone to overcome the challenges of self custody, learn the basics and learn to take responsibilities.

[Ambatman]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten

like it was any easier
It's better now that seedphrase are used rather than private keys since they easier to save.

It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges?

The sacrifice for security is usually convenience
Let me do it the easy way Is same reason people loss the easy way.
Self custody isn't for everyone
If you believe and trust a third party good for you and if not learn to realize that most times
Good things don't always come easy.

[ColdLava40]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten. Between writing down seed phrases, managing passphrases, and explaining different address types, their eyes completely glazed over.It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges? How do we fix the user experience without sacrificing the whole not your keys, not your coins philosophy?

How difficult could it be?

Most wallet today makes things less complicated, user-friendly and easy to navigate. You don't have to go through some long process in setting up your wallet.

If you do need something, you should be ready to spend time to study them. I know every wallet interface might be different, but a good number I've used and seen don't give you the headaches you described.

It's not even reason enough to consider using centralized exchanges to store your coins, except you are ready for the risk

[Alphakilo]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten

like it was any easier
It's better now that seedphrase are used rather than private keys since they easier to save.

It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges?

The sacrifice for security is usually convenience
Let me do it the easy way Is same reason people loss the easy way.
Self custody isn't for everyone
If you believe and trust a third party good for you and if not learn to realize that most times
Good things don't always come easy.

People are so used to convenience these days and that's why they always need a shortcut to success or achieve their pursuit, without taking out time to build the right foundation.
The point OP made is somewhat contributory to why mass adoption is slow and as you said, it is a trade off between security and convenience. Guess what, people would always choose convenience more instead to opt for self custody with heavy security measures that look immersely exhausting.

Therefore trying to teach a beginner how to use self custody in their best interest might require careful tutoring, mentoring and even require you do the practicals yourself so that they understand it better, without considering using a CEX as the easy way out.
Many of us actually started with fragments of information on how to hold Bitcoin or invest in crypto currencies and the experience we got shaped our knowledge today and that's why this forum is very important for guidance and support in anyway deemed necessary.

[DiMarxist]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten. Between writing down seed phrases, managing passphrases, and explaining different address types, their eyes completely glazed over.It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges? How do we fix the user experience without sacrificing the whole not your keys, not your coins philosophy?

For a first timer , it's not as easy as you will say or think. You're saying this because you are familiar with the wallets and how it works. Every one starting a thing will take a while before it will become part of the person. Self custody remains one of the things that many people finds it difficult to practice especially when it comes to self custody. The best thing to do is to make sure that, you take the newbie over and over again on how to set up the wallet with that the newbie will become familiar with the who process.

[Questat]

Self-custody has never been complicated, its only the user who is making it hard and more complex. But if you really want in full control of your own bitcoin, be the bank of your own bitcoin and secure utmost security and safety of your wallet, I guess you have no choice but to always chose self-custody wallet and ignore the convenience and stress free offers of the centralized exchange.

We don't just buy and hold bitcoin for nothing, but we aimed to store them safely at any cost for long term. Yes, it comes with responsibility, and those who are responsible enough will only succeed, leaving those lazy people at high risk of losing their bitcoin.

[Insanity]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten

like it was any easier
It's better now that seedphrase are used rather than private keys since they easier to save.

It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges?

The sacrifice for security is usually convenience
Let me do it the easy way Is same reason people loss the easy way.
Self custody isn't for everyone
If you believe and trust a third party good for you and if not learn to realize that most times
Good things don't always come easy.

People are so used to convenience these days and that's why they always need a shortcut to success or achieve their pursuit, without taking out time to build the right foundation.
The point OP made is somewhat contributory to why mass adoption is slow and as you said, it is a trade off between security and convenience. Guess what, people would always choose convenience more instead to opt for self custody with heavy security measures that look immersely exhausting.

Therefore trying to teach a beginner how to use self custody in their best interest might require careful tutoring, mentoring and even require you do the practicals yourself so that they understand it better, without considering using a CEX as the easy way out.
Many of us actually started with fragments of information on how to hold Bitcoin or invest in crypto currencies and the experience we got shaped our knowledge today and that's why this forum is very important for guidance and support in anyway deemed necessary.

I agree that the main problem is not that it is self-custody but it's helping the beginner understand it without getting overwhelmed. But convenience is often a first choice and that's why exchanges are still popular even with the risks involved. Once users understand how to backup their seeds. Secure their wallets, and take responsibility for their actions, however, self-custody becomes much easier. Education and guidance need to be improved, rather than decreased security standards. Most of the people who have used Bitcoin for some time now were novices at first but have now got better. If they are given the right guidance, they can get progressively more confident about their coins.

[Mr.leeemzy]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten. Between writing down seed phrases, managing passphrases, and explaining different address types, their eyes completely glazed over.It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges? How do we fix the user experience without sacrificing the whole not your keys, not your coins philosophy?

Some people are just too lazy to learn new things but can spend hours on social media watching meaningless videos or post or even can chat from morning to night, I don't even know how some people will still need someone to help them open or create a physical wallet with  how the world now has become so global that anyone who can just read and write do operate phones or computers entering in imaginable websites doing what they will be shocked themself, to me with the experience you had when opening the account for the people you said it's like they are just being lazy of not a serious type which will affect them in the future or even by the start of managing their wallet themself..

[X-ray]

Isn't centralized exchange more complicated due to the fact that they requires you to verify your identity, agree to their term and conditions, and finally figure out how to navigate their cluttered mess of an app where there are so many information at once?

With self custody wallet, what you need is just wrote down the seed phrase, and finished. It doesn't even need some kind of email verification, just write down the seed phrases, where is the complexity and intimidating experience in that.

[jcojci]

That makes sense if beginners feels that is too complicated. They are new in crypto and need to learns to secure their wallet. If they don't learning more, they will give up and leaves their coins in the exchanges which is not the right decision. But if they following the guide step by step, they will have secure wallets so they can store their coins there. They must search for the right guide so they will not confuse how to set up the wallet. But we know that many beginners lazy doing that and that makes them leave the coins in the exchanges.

[Bitcoin_people]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten. Between writing down seed phrases, managing passphrases, and explaining different address types, their eyes completely glazed over.It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges? How do we fix the user experience without sacrificing the whole not your keys, not your coins philosophy?

Nowadays, it is seen that most of the newbies do not want to use such wallets but they want to use very simple methods. They create an account very easily on sex exchanges and there they plan to deposit their money so that they can easily trade from there. To keep your money in a safe place, it is most important to use a safe wallet otherwise it is very risky. There are some people who use exchanges because they only have to remember the email and password but it is not risky in their mind. However, we must have an idea about the seed phrase, passphrase, backup and address type of the hardware wallet, and keep them in a safe place with care. We know that the most valuable principle for every new user is, Not your keys, not your coins, this is the most important thing to keep in mind.

[Hypnotizer]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten.

Intimidating? It isn’t AFAIK.

But why do you want to setup a hardware wallet for a complete beginner? Why not a software wallet first, so they can be a bit familiar with the process and network before they move to the hardware wallet. I think it’s necessary they learn and become familiar with the network before they move to a hardware wallet.

Between writing down seed phrases, managing passphrases, and explaining different address types, their eyes completely glazed over.

These aren’t supposed to be that hard to understand, maybe you couldn’t explain them better that’s why “their eyes completely glazed over”.

It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges? How do we fix the user experience without sacrificing the whole not your keys, not your coins philosophy?

The security system isn’t that complex and I don’t know why I’ve lately been seeing posts like this on this forum, we have lots of wallets that have user/beginner friendly UX but you still have to learn how to safeguard your seedphrase because that’s the basics.

[Outhue]

I was trying to help a friend set up their first hardware wallet yesterday, and it really hit me how intimidating this stuff has gotten. Between writing down seed phrases, managing passphrases, and explaining different address types, their eyes completely glazed over.It made me wonder, are we making security so complex that we're accidentally forcing everyday people to just leave their coins on centralized exchanges? How do we fix the user experience without sacrificing the whole not your keys, not your coins philosophy?

This friend simply don't want to learn, I hope you aren't the one that confused him or her in the first place to get a hardware wallet? Maybe they still believe in them that leaving their coins on an exchange is way better and simpler? Because running a hardware wallet and keep the recovery seed offline is one of the simplest thing anyone can do, these people knows how to install apps and games on their smartphone, run and spend hours playing the games, they spend hours on social media and posting comments, how is understanding a hardware wallet any different? This is why I said what I said, and I will repeat myself again, hope you aren't the one that confused this person in the first place?

[uchegod-21]

Self-custody doesn't have to be as complex and complicated as users make it seem. I would say that they have simply programmed their minds to see centralized platforms as the easy way out.

Some people find self-custody complicated because they are trying to learn and do everything at the same time. They want to understand how seed phrases are generated, why some seeds are 12 words while others are 24, understand passphrases, understand verifications and confirmations, and understand everything technical about Bitcoin and self-custody. All of this information can be overwhelming for a newbie trying to be their own bank.

They can actually start with the basics. Get an offline wallet, write down the seed phrase, back it up offline, and ensure that no other party has access to it. This is quite simple for a start. Other advanced knowledge can be learned and applied gradually for security reasons.

[Bastketsrus]

It's a norm for anyone to find it difficult to operate something that he has no idea about. Hardware wallet is part of the technical aspects of bitcoin and if you're not use to it, it might be difficult for you to operate for the first time but the more you use it often, it becomes easier.

However, having a good security management is what matters the most because without that, your wallet can still get compromised. I have some people that finds it difficult to operate minor things because they lack the knowledge. Every process that you undergo using a hardware wallet is for the safety of your coin but only your seed phrase is what you need.

True. A hardware wallet can feel complicated at first, but after using it a few times it becomes routine. The biggest responsibility is protecting your seed phrase because that's what really secures your coins.

[DanWalker]

Whether people admit it or not, self custody is undeniably more complex and requires more responsibility than relying on third parties. This is reality, and I think its one of the reasons why many investor choose CEX or ETF over noncustodial wallets.

But everything comes at a cost. Self custody is more difficult, but in return, we will have full control over our assets. In contrast, relying on third parties is more convenient, but we lose full control, and the safety of our assets depends on those counterparties.

[L E G E N D A R Y]

I believe this is one of the biggest challenges that crypto is facing today. Still beats me how a lot people, especially the newbies feel safer just leaving their funds on centralized exchanges, even when it’s clear that such actions introduces counterparty risk. Although some folks who do this are not blame, it’s because these options are less complex for them, I mean, no everyone understands all the technical jargons that comes with using a DEX. If devs can help make self custody a lot more easier to use, then I believe people would most likely opt for them.

[Awaklara]

I actually think it’s easier to guide beginners who have never stored or purchased Bitcoin on a centralized exchange toward using a hardware wallet. It’s better to get them used to it from the very beginning.
Those who already store their Bitcoin on a centralized exchange need something to raise their awareness about the benefits of storing their Bitcoin in their own wallet. This is because they find it easier to quickly access the exchange when they want to buy or sell.
But over time, their understanding of centralized exchanges and secure wallets for storing their assets will grow.