Self-Custody Is the Better Course of Action to Take

In the crypto market, people often talk about some tips and tricks that can help you earn some profits on the investment. This is certainly a plus point of this market because we can work around the clock here and this is what makes crypto accessible for more people since they need not manage specific schedules. While trading is one of the options that can be profitable it can also be loss-making if proper strategies are not followed.

Now if we exclude the discussion for the crypto trading then the custody of crypto is also important because whatever you buy and hold requires a wallet. If you are buying it from the centralised exchange then you do not need to worry about it because your holding is automatically kept in the exchange wallet. This is easy to use because you don't need to carry any wallet key but the problem is that you don't have complete access to this wallet since the keys are with the exchange.

What I'm trying to say here is that if you don't own the key then you don't own your crypto and this is the popular tagline in this market. So basically you need to own your key then only you can claim that you owner of your crypto holding and this is where self-custody comes into the picture. Self-custody is highly recommended especially after the situations we have seen how some crypto exchanges have performed. You never know how things can turn up in the next moment and if you're not holding your crypto with you then possibly you might lose some funds.

It is highly recommended that we need to follow the self custody practise as much as possible but if you are trading on the centralised exchange then keep the funds that are necessary for the trading only. It also requires to have a balance between both which means if you're not using any crypto holding then it is better to transfer it to your non-custodial wallet or the hardware wallet whatever you have. This is a vast topic that can be discussed in detail and I'll be trying to cover some tips and tricks in my future post which I hope will help you to understand the best use and the proper methodology to use self-custody or hardware wallets.

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