Industry leaders: Self-custody is the only way to hold crypto

With the wave of uncertainty in the cryptocurrency market following the explosion of FTX, leaders and prominent figures in the industry have started cautioning users of the dangers of storing crypto without including self-custody as a holding strategy.

Changpeng “CZ” Zhao and self-custody

Changpeng “CZ” Zhao, CEO of Binance, took to Twitter to urge the community to use self-custody wallets to store their own cryptocurrency rather than holding their assets in an exchange or centralised platform. With cryptocurrency as immutable and actions irreversal, he noted that mistakes are expensive, adding that users should do it right from the get-go.

Michael Saylor’s crypto holding recommendations

MicroStrategy CEO Michael Saylor also commented on why self-custody is so important, given the currency economic climate and the state of the market. According to Saylor, self-custody tools are in place to protect the network and its users from corruption by actors and gives investors property rights: He explained to Cointelegraph:

“In systems where there is no self-custody, the custodians accumulate too much power and then they can abuse that power. So self-custody is very valuable for this broad middle class, as it tends to create […] this power of checks and balances on every other actor in the system that causes them to be in continual competition to provide transparency and virtue.”

Dan Held and self sovereignty

Dan Held, former Director at crypto exchange Kraken and current marketing advisor at Trust Machines, also commented on how self custody is the only way to hold and maintain your own assets.