The post Self-custody matters now more than ever appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. When Satoshi Nakamoto released the Bitcoin (BTC) whitepaper, the vision was clear: to decentralize finance, empower individuals, and remove the need for financial intermediaries. It was a response to the failures of the traditional financial system and a blueprint for something different that had personal responsibility at the forefront. Summary Crypto’s shift toward custodians risks abandoning its roots, as convenience overtakes the original ethos of personal responsibility, autonomy, and decentralization. Custodial platforms continue to show systemic risk, with high-profile failures like FTX and Celsius reminding us that third-party control can mean lost access and accountability. Self-custody isn’t perfect, but it’s empowering, and its challenges (like private key management) are solvable through innovation, education, and better UX. True crypto regulation must recognize decentralization, supporting self-custody instead of forcing crypto into outdated TradFi molds that weaken user sovereignty. As crypto becomes increasingly integrated with traditional finance, we are now at risk of losing some of that original vision, which was based on personal responsibility. Self-custody, where individuals hold and secure their digital assets and private keys, is now being overlooked in favour of custodians and exchanges. With that, security, autonomy, and personal responsibility are being quietly put to the wayside, and it seems we are starting to edge back toward the same traditional setup that Satoshi sought to disrupt. The inherent risks of the custodial system There’s certainly an illusion of safety when people hand over their digital assets to exchanges, platforms, and custodians that promise to secure their assets. When users give control to third parties, they’re effectively surrendering ownership but often don’t fully realize it. Unlike regulated banks with established oversight, a lot of crypto custodians operate…

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Filed under: News - @ August 6, 2025 4:30 pm