Recently, there has been an upsurge in the number of people using cryptocurrency wallets instead of centralized exchanges. While the trend has been gaining momentum for a while, it has only accelerated towards the end of 2022. The reason behind this is the recent collapse of the FTX cryptocurrency exchange.
There are several reasons why the collapse of FTX has jolted many investors into considering self-custody. FTX was one of the world’s top three largest cryptocurrency exchanges. Its founder also worked closely with US regulators, so most investors assumed it was a safe exchange. When it collapsed, and without any prior warning, investors realized that no one was safe in the world of cryptocurrencies. The result is that most people are now turning to self-custody wallets.
Your Should Be Self-Custody Wallet
One of the self-custody wallets that have recorded significant growth recently is OWNR. OWNR is the best crypto wallet app for anyone who wants self-custody and other top services that mirror the same as you would get in a centralized exchange. The wallet is one of the most secure in the market. With the OWNR digital wallet, only you can access your assets. This means you will never have to worry about someone from the OWNR wallet team will know how much is in your wallet, let alone even being close to ever manipulating anything in your wallet. This is a major consideration for long-term investors because someone always tries to steal your coins in this unregulated market.
Another factor that has seen a surge in the uptake of crypto wallets is that the best ones can hold multiple ERC-20 tokens. This is a big deal for many investors because ERC-20 tokens are among the best speculative assets. With a wallet app, you can hold various tokens while looking forward to the next bull run. If past altcoins’ performance in bull markets is anything to go by, it is not hard to see why investors are interested in HODLing altcoins in crypto wallets. The odds of an exponential rally are high.
Investors are also turning to self-custody wallets because the best ones allow for in-app crypto trading. This means you will never have to waste time moving money between exchanges and miss out on profitable trading opportunities. The fact that you can trade without having to deal with a centralized cryptocurrency exchange has continued to draw investors to wallet apps.
Tips to using a crypto wallet safely
When using a self-custody app, it is essential to remember that there is no to ask for help if you lose your keys. Unlike a centralized exchange where you can click on forget password whenever you lose the password, losing the keys to a self-custody wallet means losing your coins. For this reason, it is important always to store your wallet key as safely as you would any of your other essential documents. Consider printing it and keeping it in a safe somewhere.
Secondly, always make sure that your wallet is always up-to-date. You can do this by always updating the software. The idea is to avoid bugs that can easily compromise your wallet. With hackers always targeting the crypto ecosystem, it is best to stay safe.
The use of cryptocurrency wallets has shot up, and it’s not a fluke. After the collapse of a major cryptocurrency exchange like FTX, investors feel they can’t trust 3rd party custody anymore. Besides, top wallets today allow users to spend and trade their crypto from the app. This pretty much eliminates the need for centralized exchanges.