What are the potential risks and challenges of self custody in the digital currency realm?

3 answers

• Dec 16, 2021 · 3 years ago
  Self custody in the digital currency realm can be risky due to the potential for loss or theft of cryptocurrencies. Without proper security measures, individuals may become targets for hackers and scammers. It is crucial to protect private keys and use secure hardware wallets to minimize the risk of unauthorized access to funds. Additionally, self custody requires individuals to take full responsibility for the security of their assets, which can be challenging for those who are not tech-savvy or lack knowledge about best practices in cryptocurrency storage.
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• Dec 16, 2021 · 3 years ago
  When it comes to self custody in the digital currency realm, one of the major challenges is the possibility of human error. Mistakenly entering a wrong address or losing access to private keys can result in irreversible loss of funds. It is important to double-check all transactions and securely store backups of private keys. Another challenge is the lack of recourse in case of theft or loss. Unlike traditional banking, there is no central authority to turn to for assistance, making self custody a high-stakes endeavor.
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• Dec 16, 2021 · 3 years ago
  Self custody in the digital currency realm is a popular choice for those who prioritize control and privacy. However, it is important to note that self custody also comes with its own set of risks and challenges. Individuals must ensure they have a deep understanding of the technical aspects of cryptocurrency storage and security. It is recommended to stay updated with the latest security practices and consider using reputable hardware wallets. BYDFi, a leading digital currency exchange, offers a secure self custody solution that addresses these risks and challenges, providing users with peace of mind.
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