While most cryptocurrency exchanges tell their investors that their platform is the safest place for investor assets, the CEO of Paxful is bucking the trend by recommending self-custody.
With more Bitcoin leaving exchanges in these times of turmoil, the question of where to store one’s crypto assets is more important than ever. It might be seen as anathema for an exchange CEO to recommend that their users withdraw their assets into self-custody. In a report that first appeared on CoinTelegraph, this is exactly what Paxful’s CEO has recommended.
The Power Of Self-Custody
Paxful CEO Ray Youssef is preaching the power of self-custody when it comes to Bitcoin and other cryptocurrencies, and he recently took to Twitter to emphasise the importance of self-custody, stating that “Your keys, your Bitcoin” is the only way to truly protect one’s digital assets. This means that users need to be in control of their private keys, and not rely on a centralised third-party to store their crypto assets.
In his message to users Youssef explained why he was making such a recommendation:
“For far too long people have trusted others to hold money on our behalf but – like we saw with the banks in 2008 and recently with FTX – you’re at the mercy of these custodians and their morals”
Youssef also warned against the use of crypto exchanges, which are vulnerable to hacks and other security threats. He noted that crypto exchanges are “not the right place to store your crypto”, and that users should use self-custody solutions such as hardware wallets or multi-signature wallets instead.
Users Must Educate Themselves On Security
The Paxful CEO also encouraged users to learn more about the security of their digital assets, stating that “it’s your responsibility to understand the security of your own crypto”. This means that users must be aware of the security measures they need to take to protect their digital assets, such as using strong passwords, two-factor authentication, and keeping their private keys safe.
It is becoming increasingly important for users to ensure that their crypto assets are stored securely. Self-custody is the only way to truly protect one’s digital assets, and Youssef’s message is a timely reminder of that fact.