Bitcoin Holders Shift Focus to Self-Custody Amidst Exchange Failures
As the world becomes more and more digital, the need for secure and reliable ways of storing and managing your money online has become more important than ever. Bitcoin and other cryptocurrencies have been touted as the answer to this need for secure digital currency, but recent events have shown that relying on centralized exchanges for storage and transactions may not be the best solution.
Heading 1: The Importance of Self-Custody
In the world of cryptocurrencies, self-custody refers to the practice of using a self-custodial wallet to manage your funds. This means that you are the only one who has control over your funds and no third party is involved for storage and transactions. Self-custody has become increasingly popular among bitcoin holders as confidence in centralized parties has taken a hit after the many bankruptcies of the past year.
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– What is self-custody?
– Why has it become increasingly popular?
– The importance of being in control of your own funds
– Confidence in centralized parties has decreased
Heading 2: Bitcoin on Exchanges Falls to New Low
Crypto analytics platform Santiment shows that the number of bitcoin on crypto exchanges has fallen to the lowest point in five years. Currently, only 5.84% of the total circulating supply is held on centralized exchanges. The last time this metric was this low was in December 2017.
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– The current state of bitcoin on centralized exchanges
– The significance of this metric falling to a five-year low
– Contrast to December 2017
Heading 3: Bitcoin Outflow on Binance
Earlier this week, news broke that Binance, the world’s largest crypto exchange, was experiencing a huge bitcoin outflow. On Sunday night, the exchange temporarily suspended BTC withdrawals as its network was flooded with transactions from Ordinals. However, it was later revealed that the fear surrounding the outflow was unjustified, as it was an internal reorganization, and the bitcoins were simply moved to other wallets of Binance itself.
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– What happened with the bitcoin outflow on Binance?
– The significance of this event for crypto holders
– The truth behind the event
Heading 4: The Rise of Self-Custody in 2023
2023 was an educational year in which many investors discovered the importance of self-custody due to all the scandals within the crypto landscape. After the fall of FTX in November 2022, there was a sharp drop in the number of bitcoin on centralized exchanges. At the time, the number fell below 7%. Self-custody of bitcoin became increasingly popular from the beginning of 2022, and this trend continued throughout the year.
– Overview of the trends in self-custody in 2023
– The impact of scandals on the rise of self-custody
– The impact of the fall of FTX on the adoption of self-custody
Heading 5: The Importance of Self-Custody for Bitcoin Holders
Self-custody is important for bitcoin holders because it gives them complete control over their funds. It eliminates the need to trust third-party exchanges and reduces the risk of losing funds in case of bankruptcy or hacks. As the number of bitcoin on centralized exchanges continues to fall, self-custody is becoming an increasingly popular option for bitcoin holders who want to ensure the security of their investments.
– Why self-custody is important for bitcoin holders
– The benefits of self-custody
– The increasing popularity of self-custody
The importance of self-custody cannot be overstated in the world of cryptocurrencies. The recent events in the crypto landscape have shown that relying on centralized exchanges for storage and transactions may not be the best solution. Self-custody not only gives bitcoin holders complete control over their funds but also reduces the risk of losing funds in case of bankruptcy or hacks. As more and more bitcoin holders shift their focus to self-custody, it is likely to become an increasingly important trend in the world of cryptocurrencies.