The concept of self-custody wallets is becoming more popular at present. With the help of the recent FIFA World Cup held in Qatar, the mass adoption of self-custody wallets for Cryptocurrencies was done. After the collapse of FTX, this concept got attention in the mainstream market.
There is an ongoing bearish phase and collapse of giant Crypto firms in the market. With this, people are becoming more aware of their assets. And, they want to keep their assets safe under their control.
The crash of this giant firm was a huge blow to the market and reminded the users that they need to control their assets. Because, when the withdrawals were halted in the FTX, users suffered a huge loss, as they were unable to withdraw their funds. This created an awareness that what belongs to them, should be under their control.
Which Is The Better Option – CEXs Or Self-Custody Wallets?
If you have a Crypto wallet generated by an exchange, then you may know the features that it offers you. With these wallets, you will have access to many kinds of Cryptocurrency trading. These wallets will store and maintain your assets with them. With this, the exchanges get ownership of your assets.
In this case, the true owner of your assets are the exchanges and they have full control over them. So, experts are of the view that users should have control over their assets and should be able to manage them. And to do this, self-custody wallets are the best option!
But, why is it becoming mainstream now and not from the advent of the market? The main reason behind this is that people do not have complete knowledge of how Cryptocurrencies work in reality. This is the first step where you should have a considerable amount of ideas on how the coins work. Many users found this first step tough.
For a self-custody wallet, you will have to create one personally. This is quite different from creating an account with an exchange. After account creation, you will have private keys. So, you will have to understand what seed phrases and private keys are. Then, you need to transfer your assets to this new wallet from all other existing wallets.
All these steps seem tough for many users and they stay away from creating one such wallet. Also, if you are trying to connect with a fresh Blockchain network, some extent of technological knowledge is a must!
New And Better Solutions
After the FTX collapse, the demand for self-custody wallets increased to a huge extent. Investors are now more interested in taking control of their assets. With this change in demand among traders, Crypto firms are also working towards developing new solutions.
KuCoin has come up with an initiative in this case. This Cryptocurrency exchange is launching a wallet that will be self-custody in nature and easy to use as well. You can use it on your phone and as a Chrome extension too! The platform makes sure that only the user can access the private keys.
With KuCoin’s wallet, you can now have full control over your Cryptocurrencies and NFTs. Also, you can manage your portfolio in different Blockchain networks from a single window. This wallet will also allow you to develop a decentralized account, free of cost. And, it will work for every aspect of Web 3. Besides that, it will also support DApps like ApeSwap and Uniswap.
To make this more interesting, the platform announced a prediction game for the FIFA World Cup event. The winner was entitled to a prize worth 30,000 USD. The focus of this contest was to make self-custody wallets easy and familiar for the community.
The Cryptocurrency market has been in the market for quite a long time now. But, it is still not perfect in redefining money’s future, which was its main goal! The FTX crash has been a shock to everyone and such crashes may arise in the future too.
But, with the help of self-custody wallets, you can now take control of your funds. In this way, the entire ecosystem will find a new path to grow healthily! And, anyone can trade and earn in cryptocurrencies with BitCode AI