Paxful Boss Advocates Crypto Self-Custody, Cautions Against Crypto Exchanges
Investors’ demand for proof of their assets via crypto exchanges strengthens the case for self-custody. Ray Youssef, the CEO of the cryptocurrency exchange Paxful, supports the idea of self-custody despite assuming responsibility for more than 11 million customers.
While some CEOs of crypto firms are intensifying efforts to ensure the security of assets on their platforms, Youssef is encouraging crypto holders to become self-custodians of their crypto assets.
FTX’s demise served as a wake-up call for investors who had previously relied heavily on crypto exchanges to safeguard their digital assets. But, FTX’s former CEO Sam Bankman-Fried betrayed this confidence by stealing users’ money through its purported trading platform, Alameda Research.
Since then, many exchanges have been forced to make their wallet reserves public to ensure transparency and promote trust among their users.
Youssef Explains Reasons For Advocating Self-Custody
Youssef stated in a tweet that he never handles investors’ money. But, he added, “that’s what makes me different from others in the industry.”
“I’m sending a message to all of our [Paxful] users today to tell them to take control of their Bitcoin. You shouldn’t retain your funds on Paxful or any other exchange; you should only save what you trade here.”
Youssef sends users weekly emails with a clear warning not to store their cryptocurrency on any exchange, including Paxful. The businessman further highlights the drawback of relying on stewards like SBF, claiming that “you’re at the mercy of their morals.”
Youssef further highlighted the unique opportunity that Bitcoin offers – the chance to be in control. Nevertheless, the Paxful CEO provided guarantees concerning the security of investors’ funds who choose to deposit their Bitcoin on Paxful.
Meanwhile, Youssef recently tweeted that “Your keys, your Bitcoin” is the only way to protect one’s digital assets. Hence, he encouraged users to keep control of their private keys and refrain from entrusting the storage of their digital assets to a centralized third party.
The CEO of Paxful advised individuals to learn more about safeguarding their digital assets, saying that it is their responsibility to understand the security of their own money. Users must be aware of the security precautions they must take to protect their digital assets.
Such precautions include using strong passwords, two-factor authentication, and keeping their private keys safe.
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