You could still hold key to your assets and still lose your funds hypothetically, this could be possible for a centralized based wallet, where written programmed codes can be rewritten which can alter all previous programmable features by either a project developer allowing them to have control over all your asset which includes imposing limits on a users wallet, this has not been mentioned in any crypto-based self custodial wallet but the probability of such reoccurring act is quite possible if such project governing policies are bridged, self custody increases trust, however, to sell your bitcoin to fiat you would need a centralized exchange which makes them indispensable in the crypto space.
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The purpose of decentralization is defeated if you're having problem moving your fund, bitcoin aims at giving users sovereign right over their assets, however, your bitcoin in centralized exchanges isn't under your full custody, the recent Celsius exchange withdrawal halt shows how important it is to flexibly control your keys those caught in this mess would have no choice but to wait pending when transaction activities will be back to normal.
Private keys
Protecting your bitcoin means owning your own set of private keys which can only be accessed by you, these keys allow you to sign and verify transactions they are represented in a 12-24 word seed phrase while private keys grand access to your wallets fund they must be guarded with care storing your keys online can as well get your funds exposed securing your bitcoin using a hardware drive have proven to be the most secure means of protecting your assets.
Overall we must as well know with great power comes great responsibility to protect your assets both online and offline require understanding why self-custody is important in controlling our funds, knowing however we still need a centralized exchange to transaction our crypto to fiat, bitcoin a decentralized digital asset isn't controlled by any government agency breathing freedom to humanity.
Hello @mccoy02
Thanks for this educational post, the issue of centralized platforms running on the blockchain undoubtedly represent serious reliability issues, and these types of platforms are the ones that in effect have been damaging the image of the cryptocurrency market.
Best regards, be well.
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I hope more decentralized features that will make the centralized systems obsolete will be introduced anytime soon indeed centralized system has it limitation which need to be properly addressed for crypto adoption to be achieved fully.
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In the crypto space, one should be keen on privacy and security. If you do not solely possess your keys, then you are already at risk.
Nice piece buddy
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You are absolutely right my friend thanks for the share
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Your post was upvoted and resteemed on @crypto.defrag
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Thanks for the support 🙏🏿
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You've touched on a delicate topic. And one that anybody who has crypto assets should take more seriously. Having full custody of your asset is very important. Like you mentioned, with the Celsius exchange withdrawal issue. One needs to have more control of his assets - those affected will have to wait. Very informative. Nice publication.
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Sure understanding self custody in crypto is what ever users need to keep their assets secure thanks for your time see you next.
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The big problem with centralized platforms is that they often go south at times like this. "Freezing withdrawals" is the main fear that pushes most people to go to crypto in the first place, and still, it happening here in the world of crypto
Thanks for the informative post :)
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Account freezing in centralized system have actually been reasons why most users choose crypto but still, face same issue although most freezed asset are still encountered in centralized crypto based exchange.
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Hi @mccoy02
Not your Keys not your crypto is the first and perhaps the golden rule of crypto
The faster we learn it the better.
Yet alot of investors keep forgetting to implement it and suffer huge losses.
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A lot of users barely pay attention to security and privacy on blockchain they view crypto as just gain and exit system thanks for the comment.
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Hello @mccoy02
Important point this that we must have the keys of our funds. The big problem with centralized exchanges is that they can block funds whenever they want, that is something I don't like.
I think this what happened with Celsius is an example of that, and I hope that more and more the trend will be for decentralized wallets to be used more.
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Celsius broke their users trust a lot of negative review will be on the exchange which will as well reduce the company reputation holding users funds means they cant meet standard of running a firm business.
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