One of the most famous and influential people in the cryptocurrency world is Vitalik Buterin, the founder of Ethereum. He has repeatedly emphasized that it is important to store cryptocurrencies in your own wallet, not on an exchange or other centralized service.
In his address to the cryptocurrency community, Vitalik Buterin noted that storing cryptocurrencies on centralized exchanges can be dangerous, as such exchanges can be subject to hacker attacks that can lead to loss of funds. Also, in the event of an exchange’s bankruptcy, users may lose access to their funds because they are not stored in their own wallet.
Self-custody is important. And social recovery and multisig is a great way to do it.
A quick reddit post on how I think about choosing guardians for social recovery and multisig wallets:https://t.co/FY1iyJ6BFC
— vitalik.eth (@VitalikButerin) March 17, 2023
At the same time, storing cryptocurrencies in your own wallet may be a safer option. Vitalik Buterin noted that this allows users to have full control over their funds and ensure their safety. Besides, in case of losing the private key required to access cryptocurrencies, one can lose all funds. That is why Vitalik Buterin advises users to keep private keys in a safe place and reserve them in case of loss.
Cryptocurrencies are decentralized assets that do not depend on any centralized authority. Therefore, storing cryptocurrencies on centralized services contradicts the very essence of these assets.And, although it is convenient to store funds on exchanges, you need to understand that this involves certain risks. The most reliable option is to store cryptocurrencies in your own wallet.
It is also important to note that storing cryptocurrencies in your own wallet may be more difficult than on centralized exchanges. This requires sufficient knowledge of cryptography and cryptocurrencies to properly set up the wallet and ensure its security. However, the appropriate amount of knowledge and effort can prevent the loss of funds due to hacker attacks or other problems associated with centralized services.
In conclusion, Vitalik Buterin has correctly reminded the cryptocurrency community of the importance of self-storage of cryptocurrencies. Although storage on centralized exchanges may seem convenient, it involves certain risks. The most reliable option is to store cryptocurrencies in your own wallet, which can ensure full control and security of funds. However, you need to have enough knowledge and effort to properly store and secure your cryptocurrencies.