The significance of self-custody is a central part of crypto education.
By controlling the keys, we only rely on the safety and reliability of decentralized blockchains. We only have to trust the code.
Yet, (most of) the top crypto advocates somehow forget to mention this part lately.
Perhaps this is because most of them are only interested in promoting their sponsors and crypto custodians. Thus, it would contradict their previous advertisements of centralized platforms if they even explained where the value of cryptocurrency lies.
Scams will always infest finance. Why do we need to trust anyone when we fight for trustlessness? In 2022 investors learned it the hard way with FTX, Celsius, and Gemini.
The crowd follows the wrong people. Sadly many of the top crypto influencers were the worst we could have to promote the industry.
We explain the true value of cryptocurrency.
Decentralization is the vehicle for censorship resistance and true financial freedom.
This is what crypto is about and not about getting rich quickly.
Forget about the Centralized Platforms
Source
How can anyone be confident in the safety and reliability of crypto when nobody cares to educate the public on a revolutionary technology that positively disrupts finance?
Does Pomp, Bitboy Crypto, or The Moon Carl explain to their audience what abrupt changes cryptocurrency brings?
Did they ever explain how to use crypto with a non-custodial wallet?
Are these high-profile crypto advocates encouraging shops and businesses to accept cryptocurrency?
Did they use cryptocurrency themselves? Ever?
Yet, these influencers have millions of followers. How many crypto influencers are just selling crypto courses capitalizing on their sudden rise into prominence, and how much responsibility do their words bear?
How many of these people promote centralized exchanges without mentioning the dangers they include?
Any platform or person that holds the keys to your cryptocurrencies is a potential thief that will run with your crypto, and you will lose everything.
Theft in this context is a metaphor, but sometimes it happens exactly as a theft (see Quadrica, MtGox, and various other exchanges).
Even for institutions, this is a terrible idea. Why would they invest via a platform that can collapse at any moment and lead to vast losses?
There’s absolutely no reason for an institution to pay Grayscale or other third parties for a job that only needs a multi-sig wallet.
Trustless networks open up a whole new world of possibilities.
Here is what Bitcoin is about:
What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.
- Satoshi Nakamoto, the Whitepaper
Those that oppose Bitcoin are the third parties.
We do not need third parties or payment processors, and certainly, there is no need for a stranger in an office controlling our funds.
The only purpose centralized exchanges serve is the voluntary transition.
We still need centralized exchanges acting as the ramp supporting the metamorphosis of money.
In Conclusion: Find The Withdraw Button
Exchanges serve to buy crypto using fiat and withdraw immediately on a non-custodial wallet (a wallet that provides the private keys or seed phrase).
We can’t trust centralized exchanges or any third party with our keys as they present a vulnerability to our financial sovereignty.
Self-custody represents self-sovereignty and financial freedom.
Cryptocurrency delivers the ability to transact without a third party blocking our transaction for whatsoever reason.
The private key (or seed phrase in wallets) grants us access to the crypto and allows us to transfer our cryptocurrency on the blockchain.
Cover image: Pixabay
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Originally published on Medium
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