Should I Self-Custody My Crypto/ My Story

Hey everyone, welcome to my blog! Today, I want to share a personal story about the importance of self-custody in the world of cryptocurrency.

Let's start with a little history lesson. Back in the 1920s, there was a collapse of the banks due to bank runs. These bank runs occurred when customers tried to withdraw their funds, but the banks didn't have enough money to fulfill all the requests. This is why we have systems like the FDIC in place today to ensure the safety of our funds in traditional banking.

Now, let's talk about crypto. The whole point of cryptocurrency is to eliminate the need for intermediaries like banks. With crypto, you have the power to self-custody your funds, meaning you don't have to trust anyone else with your money. It's all about taking control and being responsible for your own financial security.

Here's where my story comes in. I've been in the crypto space since 2013, and I've always believed in the importance of self-custody. However, in 2020, I made a mistake. I trusted a company called Celsius to hold my crypto and offer yield on it. Long story short, they ended up losing money and shutting down. I learned the hard way that not your keys, not your crypto.

It's not just Celsius. There have been numerous cases of exchanges and platforms failing or getting hacked, resulting in the loss of customer funds. Trusting others with your crypto is always a risk, no matter how trustworthy they may seem. That's why self-custody is so important.

I can't stress this enough: not your keys, not your crypto. When you self-custody, you maintain complete control over your funds and eliminate the risk of them being lost or stolen. It's all about taking ownership and responsibility for your financial future.

Lastly, I want to address the issue of crypto trusts and ETFs. While they may sound like a convenient way to invest in crypto, they actually go against the principle of self-custody. When you invest in these instruments, you don't actually own the underlying crypto. It's essential to understand the difference and make sure you're truly in control of your funds.

In conclusion, the key takeaway from my story and the world of crypto is the importance of self-custody. By self-custodying your funds, you maintain control, security, and ownership over your crypto assets. Don't make the same mistake I did and trust others with your crypto. Remember, not your keys, not your crypto. Stay safe out there in this exciting but unpredictable frontier of money.