Don't be deceived to think that self custody has failed.

[arwin100]

‎Holding your coins in a cold wallet and protecting your key, safely keeping it offline is better than leaving your coins under centralized control.

Post like this will only convince some greenhorns to believe that centralized custody is the best option.

A few people would take advantage of the hardware wallet’s hacking; they would spread misinformation about the wallet system. Exchange or their representatives will try to encourage investors to keep their funds into centralised exchanges. But I don’t think it’s enough to convince smart investors to keep their funds in exchanges.

It’s always preferable to hold your funds in a non-custodial wallet; it doesn’t matter whether you use a software wallet or a hardware wallet. Just need to make sure the device was purchased from the official sources and hasn’t been tampered. And the most important thing is to secure your seed phrase as well. Then almost we are safe; just check every transaction carefully about the address and fees.

I feel bad for those people believe on the misinformation spreading. That really means they are gullible and easy target individuals for another possible scams.

Also it doesn't mean one or two hardware wallet got hack, we can already generalize that all of those self custody wallets is risky or failed its purposes. Its just there are company do some negligence that's why those issue happens.

Despite of what happen, I still believe that self custody wallets still the better choice. Rather than believing on claims that they should store their funds on exchange for SAFU.

[Somegory]

There is nothing else to trust in this space than self custody, hardware wallets have had a very bad year so far and most of these problems are the faults of the makers.

- Use of weak Entropy
- Reseller betraying the company
- Users data getting leaked via the companies that are meant to protect or get rid of the data.

It's a eye opening year for every industries that has something to do with crypto wallets.
Self custody is still way better than anything else but have it's flaws as well like the examples I dropped.

I think it's better that newbies who want to get into hardware wallet consider older hardware wallet like Trezor which is open source and also non-custodial, self custody haven't failed, it just needs some security adjustments.

[Rruchi man]

‎Some bad advise being spread on different social media is just to make people doubt self custody, but I am making this post to remind you, or so you can also remind the Bitcoiners outside the forum that is beginning to doubt self custody, I want you'll to remember that the wallets that are attributed to Satoshi and are holding lots of Bitcoin has not yet been hacked and the Bitcoins has not been stollen. 

Negative news always travels faster than positive news, so more people will hear of this bad advice faster than if the advice was the good one. The bad thing is that reacting to such advice without doing your own research will mostly put you more in harms way, a position that most investors don't want to be in even without being aware.

[Curious T]

No one can even deceive me. I live in a country where things are not done properly. Government and financial institutions have so much power over us. So I have seen a way to have at least a little control over part of my money, and I would always choose that over any other method. I still use the banking system for transactions, and I also have bank cards, but those are for my day to day spending. My money will always remain in a non custodial wallet. I saw some people using the thing that happened with Coldcard to run a narrative that self custodey was not good, but they can't fool me. It doesn't mean I don't use exchanges, but I don't keep my money there. I only use it for trades when I want to buy or sell coins.

[YellowSwap]

I feel like it was intentionally to make self custody look like the wrong choice, whereas the centralised entities are not doing the same, behind everyone's back they choose self custody too, but they got business to run.

Is CZ keeping his own Bitcoin on Binance exchange? I'm sure the guy is using Trezor or few airgapped devices for his coins, and they came out with trust wallet misleading the public.

If they make self custody the top priority who are they going to drain with the 10/10 method? Gullible people who can't do research on their own will keep getting used until the wise up themselves.

[Mrbluntzy]

I agree to the original poster to some extent
Self custody isn't for everyone
Yes it has its strengths but there are people that are not ready or willing to take responsibility for their finance
And it would bypass certain risk by using a third party
This doesn't mean I encourage centralization
Just that there are people that know nothing much about security and been cautious.

True, it's not for everyone. However, don't you think that with advice like this, even newbies who could handle self custody very well might not even want to go for it because they saw a post advising against it? My concern is not even about people who chose to use centralized exchange to hold their coins, I do not care about them, let them deal with their decision but people I feel concerned about are those newbies that maybe wants to seek for advice about the best method to hold their coins and then they will be swayed to use exchange meanwhile they can handle self custody very well only if they are thought to do so.

[macson]

Just be careful in filtering what people say on social media these days. Many people give misleading and wrong opinions about things, no matter what their intentions are. 

Self-custody itself isn't failing. What's failing is either the developers who fail to secure the products they create or the users who aren't able to apply security to their wallets. 

Just look at how many wallets get compromised because of hardware wallets or user mistakes and compare that with the wallets that remain secure. If self-custody were failing, those wallets would have been compromised a long time ago.

[Ambatman]

True, it's not for everyone. However, don't you think that with advice like this, even newbies who could handle self custody very well might not even want to go for it because they saw a post advising against it? My concern is not even about people who chose to use centralized exchange to hold their coins, I do not care about them, let them deal with their decision but people I feel concerned about are those newbies that maybe wants to seek for advice about the best method to hold their coins and then they will be swayed to use exchange meanwhile they can handle self custody very well only if they are thought to do so.

The thing is any decision in life one makes
They should be prepared to enjoy both the strength and weaknesses.
It's better they learn first about what they are getting in to and if it aligns with their goal.
Not everyone are in Cryptocurrency for privacy or having control over their funds
Some started with just to make money but as time goes on they realised the importance of money you can spend
Without fear of been held or waiting for days of approval.

[7juju]

Some people are just biased and don't think outside the box or will I say that they don't understand much about bitcoin security and privacy. Exchanges are also victims to hackers which makes it not a good choice because you automatically handed your coins to a third-party and it was still stolen. It's not all exchanges that can make a refund of stolen funds.

Using a cold storage offline wallet like Electrum cold storage with a strong password is enough to keep your coins safe from hackers. You can also use multisig wallet like 2 of 3 multisig wallet. It's our responsibility to become smart as all these hacks played out and improve our wallet security by affording any error that will lead to your wallet being compromised.

honestly I don’t even have to zeal to advise people anymore on what way they want to store their bitcoins. This argument of where is best to store bitcoins has been ongoing for long, but it seems the more we try to tell people to choose self custody over storing their bitcoins in centralized exchanges, the more they find reasons to argue with you and they will still end up doing what is in their mind. Everyone is responsible with their investment, they should just store their bitcoins wherever they feel comfortable with. For me I will choose self custody everyday. It’s not as if I’m benefiting anything from the people I keep advising to choose self custody over third party services, but they keep proving stubborn, so I have let everyone do whatever pleases them.

[Abu-Naim]

‎
‎Holding your coins in a cold wallet and protecting your key, safely keeping it offline is better than leaving your coins under centralized control.


Post like this will only convince some greenhorns to believe that centralized custody is the best option.

They should have open up to let them know how centralized exchanges operate, how they control our money and restrict us from getting access to our money until they are ready to allow us to withdraw which is not fear because we own our money not for them to control.

However, if you can use cold wallet to store your Bitcoin, you will be safe from all these dramatic losses because you will only need to keep your seed phrase safe offline to avoid leaving online for someone to maybe have access to them. If you can keep them safe for as long as you can, then you can hold Bitcoin for long because not your keys, not your Bitcoin.

[Stable090]

They're too scared to keep it to themselves, don't listen to these people that are saying that self custody is overrated and trust should go to the exchanges.

Why will anyone be even scared to keep their coin by themselves? If you are planning to invest, then you should be prepared for that, their is nothing to be scared about, make sure you understand how you will properly store your bitcoin before you start your investment journey. How are you even going to trust other people with your money, is that really proper? I don’t think so. If you are leaving your coin on exchange, then you are not in control of your money, and if anything happens to the exchange, then your money is at risk already.

[sokani]

I wouldn't take the Reddit post seriously. People thought their funds were safe on Mt. Cox, which at that time was the biggest exchange, until it was hacked and became insolvent. People thought their funds were safe on FTX until it became insolvent. Self-custody presents its own challenges, but it's better than CEX. If it's not your keys, it's not your coins.

I know some would argue that Bybit and Binance got hacked and they didn't shut down, but what do they think would happen if they suffered such a magnitude of hack the second time?

[AYOBA]

Self custody as the name implies has to do with self responsibility for keeping your investment safe. There must be the knowledge necessary to maintain and manage it and stay safe and that's the main point of it. So it involves a learning curve that must be mastered and put into practice and know the right tools to use, else the knowledge is a waste. 
The keys must not be given out to anyone who is not trustworthy and even those trustworthy, care must be taken.

Self custody is a wallet that most of the investors trust pass than anyone because it keep our investments very safe than using any other centralized exchanges, and the mistake that most people made is that they don’t think of getting knowledge about the about how the investment goes before they should introduce themselves into it. Investment is not like the normal gambling that once they’ve the capital they can start it up without seeking for the knowledge; but investing doesn’t work in that way and that’s most of those newly refuse to acquired knowledge lost huge amounts of money.