Image Credits: blockbuild.africa
In the 2022 bear Market, we see lots of bad events and recently FTX drama and now people are very sincere with self custody wallets. Cryptocurrency is based on blockchain technology that’s why all assets belonging to this technology which are less-scalable.
why do I talk about less-scalable, Crypto projects founder pay cost to scalable their project and we see lots of new coins daily introduced by someone for somehow problems
Blockchain itself is less-scalable but we don’t discuss in this blog post why hardware wallets are important to save our crypto assets and what’s a disadvantage of self custody
Why Self Custody is important in this days
After the FTX fraud we all are very know about how exchanges handels our crypto assest how they safe protect our tokens
Binance Introduce the Proof of Reserve (POS), which allows us to see the exchanged cold storage wallet balance via On-Chain; this is incredible; we can watch live transactions using blockchain technology.
when everyone hurts because Sam Bankman-Fried f*cked the whole crypto market with his great management skills. They use Quikbook for billions of dollars‘ worth of user assets, and its great risk management team head is Caroline Ellison. WOW
NOW, according to POS, we can see exchange total crypto holdings if we visit the Nansen website, where we can see total binance exchange crypto holdings.
On the left side of the above image, we can see the Binance Exchange Cold Storage wallet address, which Nansen Dashboard presents in great detail.
Anyone who wants to investigate this cold storage wallet address can do so now, but you won’t be able to understand the transaction because there are many technical terms included when you investigate the address using blockchain scanning.
So if you manage your known crypto assets through a self-custody wallet, first you can manage your known device, then second, manage your password, and third, manage your self-custody seed phrase. WFT
It is not as simple to manage cryptocurrency as it was in the past, when everyone managed their own gold in their homes.
Why People Manage So Many Things: We know we don’t know our bank account password because we use debit or credit cards for payments. If I manage my own crypto, I’m not using the hardware wallet daily.
ME: What can I do if I forget my wallet device?
Company: Don’t worry, use your seed phrase, and then you recover your assets.
Me: “WOW!”
I forgot my hardware wallet’s password after months of not using it.
Company: “Don’t worry, reset the device using your seed phrase.”
Me: WOW! Amazing!
4 months later, I shift my house to somewhere i don’t know where my wallet and seed phrase are.
Company: Your seed phrase is your key; we don’t help you.
Me: I have 10,000 dollars in cryptoassets, including this seed phrase I wrote on paper and can’t find.
Company: Sorry, we can’t help you. Thanks, we deliver self-custody.
That’s why Binance CEO Chanpage Zhao told 99% of people lost their money using hardware wallet because we don’t manage correctly.
Wrapping Up
This debate is too large because we all know that management is the most important skill in the world. In our daily lives, we manage our time, holidays, work, and most importantly, money, which we can manage with a debit or credit card because we want to manage our budget as well.
How can we easily manage these budget things now if we use a crypto self-custody wallet? There are many less-scalable things in crypto, and I’m not a crypto maxi; I’m just exploring my life. If we handle our own custody, what issues can I expect to face.
In Recent a crypto self custody startup lunch idea hardware wallet uses NFC-based cards to reduce risks related to seed phrases.
