That puts responsibility on you, such as having to apply proper security measures, come up with strong passwords to protect your accounts, and be careful when it comes to entering addresses. But, ultimately, it’s just you and your own money — no banks or financial institutions of any kind.
How to Look After Your Crypto
Well, that might be fine when it comes to you and me — regular people with several hundred, or even a few thousand dollars worth of crypto in our possession. But what if you had hundreds of thousands? Millions? Hundreds of millions? All of that in cryptocurrency, where one mistake could result in losing all of that money irreversibly?
That doesn’t exactly sound fun, does it? If you feel that way about hypothetical money, you can imagine how entire businesses feel about their real money in crypto form. With that in mind, it is not surprising that many of them hesitated to go crypto for a long time. Even now, many are still stubbornly sticking to fiat.
But, they now don’t have to handle their money themselves, thanks to cryptocurrency custody solutions. To put it simply, these so-called crypto custodians are companies — 3rd party services — that offer to hold the funds on behalf of large players and keep the money safe for them.
The Rise of Crypto Banks
This gives said large players an opportunity to use crypto and reap its benefits while also ensuring that their money is safe by placing it in the hands of professionals. There are drawbacks to this, of course, such as once again hiring someone else to handle your money for you, which was previously the role fulfilled by the banks. And, there is also the need to pay the custodian their fee.
But, ultimately, all of these scenarios involve sacrificing a bit of money instead of gambling with the whole amount.
Would you put your money with crypto custodians?