While self-custody is considered the best way to secure one’s funds, many need to recognize the risks involved in storing Seed Phrases physically. A search by the Nevada State Police Department released the opening sentence of a suspect captured on a body camera. A viral video on Twitter shows two police officers searching a suspect’s car and finding notes. Revealed the suspect’s opening sentence, handwritten, a popular way to avoid online compromises.
Binance CEO Changpeng’ CZ’ Zhao watched the video and warned investors about the various risks associated with different methods of storing cryptocurrencies. But learn the risks of each method.
The video sparked conversations about how best to memorize opening sentences, with the most popular suggestion being to memorize the opening sentence. While memorizing the opening sentence (a unique combination of 12 or 24 words) sounds safe, CZ pointed out that the human mind’s lack of heredity and forgetfulness are two of the biggest flaws in storing information. Important in the “brain portfolio.”
The arrest of former FTX CEO Sam Bankman-Fried over alleged embezzlement was taken as a signal to reconsider long-term cryptocurrency storage strategies. While an immediate response was to withdraw funds from cryptocurrency exchanges, CEOs have come forward to ensure the safety of investors’ funds, regardless of where they choose to store their cryptocurrency. On the other end of the spectrum, Ray Youssef, the CEO of crypto exchange Paxful, sided with the idea of Bitcoin BTCtickers down $16,795 self-custody. He promised to send weekly reminders to all investors to withdraw their funds from the exchange. “My only responsibility is to help and serve you. users to move their bitcoin to their custody.
You shouldn’t keep your savings on Paxful or any other exchange, and you should only keep what you trade here,” he said.