Self-custody is truly necessary for everyone.

[abhiseshakana]

For me my self, true financial security lies in self custody, if you don't control it, you don't own it. Whatever the situation. When we want to safeguard our assets the first option and unnegotiable are the safest and the convenience of access and using it at any time we want. My main principle for everything related to money that small mistake big money, big mistake more money.

With those principle, i always thinkhow I prevent a single mistake from destroying my entire wealth, i always make a checklist as my personal SOP before do action related to money, such as do transfer or making payment. I ensure there is a procedure in place before money leaves my wallet. It doesn't make sense, if due to complexity of self custody which actually important in protecting our asset, we entrust others with the safekeeping of our assets.

For me going to cour mean we already lost, based on my experiences it is costly, take long times and waste our energy and mind. Its mean legal guarante also costly better prepare an umbrella for the worst and prepare for the best by avoid suffer losses

[batang_bitcoin]

Maybe it is better to diversify not only between different forms of custody, but also between Bitcoin, traditional investments and regulated institutions.

That is diversification in general knowledge for investments. I agree on this strategy that if someone has made it with bitcoin and still wants to invest, they can do it with the other investments that they know of. It's how they're spreading the money and wanting to be part for other assets that they think has also the potential to move a lot. While speaking only for Bitcoin, self custody is important and it's not a choice to make but an actual thing to do beforehand. Because the other assets are regulated and we might just buy those stocks under a broker's account without even holding a certificate of ownership.

[Lida93]

Why do we fear responsibility in this generation more than we fear losing our freedom?! Self custody doesn't just make you feel sole ownership and control of your asset, it gives you free access to it any time of the day without passing through protocols and limits.

When an exchange is hacked or shutsdown it doesn't go down without involving customers funds, but while you self custody just by keeping your seed phrase safe, you have nothing to worry about loss of funds and your financial activities are so private than ever.

[Russlenat]

No doubt, self-custody is what's best for us, but to be honest, even if we keep instilling to every investor to have self-custody over their bitcoin, some investors even doubt if they can perfectly perform self-custody over their bitcoin because we all know protecting our bitcoin on our own is never easy, it requires extra time and effort so that we can ensure that they remain safety and secured within our own custody. And not every investor have the capacity to do that, that's why I don't blame others if they chose to still stick with centralized exchanges.

[Darker45]

One false move could mean your funds are gone. And your funds aren't insured while in self-custody.

True, but neither are funds stored in centralized exchanges insured. The exchange can make a mistake that would cost their customers and they end up getting nothing. If people actually want their funds insured up to a certain amount, then they should keep them in fiat and store it in the bank. To be honest, i would rather leave my funds in fiat and keep it in the bank, than buy crypto and store it in an exchange.

Same here.

What I'm saying, however, is that Mt. Gox, Bitfinex, FTX, Bybit, and others have committed mistakes, lost funds, even crumbled down completely. Their users got their money back, or have received compensation, fully or in part, albeit late in some instances.

When one who is into self-custody commits a mistake and lost funds, not a tiny fraction of it will be returned to him/her.

I'm not a fan of centralized exchanges. I'm simply stating facts.

[ultrloa]

One false move could mean your funds are gone. And your funds aren't insured while in self-custody.

True, but neither are funds stored in centralized exchanges insured. The exchange can make a mistake that would cost their customers and they end up getting nothing. If people actually want their funds insured up to a certain amount, then they should keep them in fiat and store it in the bank. To be honest, i would rather leave my funds in fiat and keep it in the bank, than buy crypto and store it in an exchange.

Same here.

What I'm saying, however, is that Mt. Gox, Bitfinex, FTX, Bybit, and others have committed mistakes, lost funds, even crumbled down completely. Their users got their money back, or have received compensation, fully or in part, albeit late in some instances.

When one who is into self-custody commits a mistake and lost funds, not a tiny fraction of it will be returned to him/her.

I'm not a fan of centralized exchanges. I'm simply stating facts.

Some of the them manage to compensate several users got affected, but as always this does not give any guarantee that everyone will get their funds. Usually as what we have seen, it takes many years before users got their refunds or just get nothing then continue to fight their rights to get a refund from those exchange that collapsed.

This is what I don't like about centralized exchange, since once they get compromised their users will get heavily affected on the situation happening to them.

I still used those top centralized, exchange but only for buying and trading for short term. I don't plan to use them for long term holding, because we provably all know that this is the most riskiest decision to do.

[The Cryptovator]

Is it better to leave our money in a large regulated institution, where there are rules and, if there is a problem, you can go to court?

No, at least I am not going to store my Bitcoin and other crypto in any regulated institution. The reason they are custodial and may seize my funds anytime for any reason.

Self-custody gives the user direct control over their Bitcoin, but it also puts all the responsibility on them.

Definitely, we have to secure our funds in our own bank. Because only you have access to your wallet, which is called your own bank. So you have to take that responsibility.

Some people may have difficulties dealing with this. A seed phrase kept in an unsafe place, a compromised computer or phone, a lost backup, or simply a security mistake can be enough to lose all your Bitcoin forever.

Older people, who have difficulties with technology, may have more problems with the wallet and security.

And for someone who has a large amount of Bitcoin, does it really make sense to put everything in self-custody?

That’s why it’s very important to learn at least basic things about Bitcoin and wallet systems. Unless you know it, then probably you still aren’t suitable to purchase and store Bitcoin. Of course, it does make sense to secure your funds in your self-custody. It’s not very difficult at all; it's just a matter of learning.