Questions tagged [self-custody wallets]

Andrea Mon Sep 09 2024 | 5 answers 887

I've noticed a trend among Bitcoin investors where they're increasingly moving towards self-custody wallets. Can you shed some light on the reasons behind this shift? Are there specific benefits or concerns that are driving this change in preference? Understanding the motivations behind this trend can help investors make more informed decisions about their crypto holdings.

CryptoMagician Sun Sep 01 2024 | 6 answers 1133

It's a legitimate concern that many individuals in the cryptocurrency space have. The question is, can self-custody wallets truly be hacked? While no system is entirely impenetrable, self-custody wallets offer a high level of security when used correctly. The key lies in the user's responsibility to safeguard their private keys and take necessary precautions, such as using strong passwords, enabling multi-factor authentication, and storing their keys offline in a secure location. However, even with these measures in place, it's important to note that vulnerabilities can still exist, particularly if the user is not cautious or falls victim to phishing scams or other forms of social engineering. Ultimately, the answer to the question is that while self-custody wallets can be hacked, their security depends heavily on the user's actions and the steps they take to protect their funds.