What are the risks of self-custody crypto storage?

3 answers

• Elle CarlottaJul 17, 2022 · 3 years ago
  Self-custody crypto storage can be risky due to the potential for loss or theft of private keys. If you lose your private keys, you may permanently lose access to your funds. It's important to securely store your private keys and have a backup plan in case of loss or damage. Additionally, self-custody requires technical knowledge and can be complex for beginners. It's crucial to understand the proper security measures and best practices to protect your crypto assets.
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• applzOct 21, 2022 · 3 years ago
  When it comes to self-custody crypto storage, the main risk is the responsibility that comes with managing your own private keys. If you make a mistake or fall victim to a phishing attack, your funds could be stolen. It's essential to be cautious and double-check every transaction and address before sending funds. Regularly updating your software and using hardware wallets can also help mitigate these risks.
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• KopCurryApr 23, 2024 · 2 years ago
  Self-custody crypto storage is not without its risks, but it also offers benefits. By taking control of your own keys, you eliminate the risk of third-party hacks or exchange failures. However, it's important to note that self-custody requires a higher level of responsibility and technical expertise. If you're not confident in your ability to secure your private keys, it may be safer to use a reputable custodial service or exchange that prioritizes security.
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