Far beyond simple speculation in cryptocurrencies, there exists a much more profitable universe in the Crypto market, but also much riskier, which is holding cryptocurrencies in self-custody.
Self-custody means you are the holder of the keys, meaning you have the coin, and you are your own bank. You have the key to the vault in self-custody; you do not need to rely on a centralized brokerage to tell you when or how you will move your resources.
In a traditional bank, you cannot withdraw your money in full; you cannot send any amounts abroad without first going through bureaucracy in a centralized brokerage either, you have rules to follow. In self-custody, it is just you, and no one has the power to control what you have. However, great power requires great responsibility. In self-custody, you leave the controlled and centralized environment of third parties and enter a completely uncontrolled environment. You are your own control, and if in self-custody you want to explore decentralized finance protocols, then it gets worse. Many people take their resources from the brokerage to their own wallet. Once that is done, they commonly try to increase those resources; they do not just want to leave the currency idle. This is where the great danger of this universe enters, when they start researching terms like: income with Bitcoin, leaving coins in the wallet earning... The algorithm will flood this person with ads for malicious protocols that only want one thing: to drain all your funds from your connection.
From the moment you connect your wallet to a malicious protocol, you may be giving it total rights to remove funds, etc., and after you do that, there is no turning back. The protocol will drain your wallet and there is no one to turn to. Remember, you are your own bank, meaning centralized exchanges have their own ways of handling funds but also have their responsibilities regarding the security of your money. When you send to a private wallet, all of this is your responsibility.
It is very common for newcomers to enter the Crypto space and see this universe as they see the traditional mainstream market, and for this reason, they do not take care of the security of their money because they are used to a third party doing that.
Yesterday, one of my mentees contacted me saying that a friend of his sent money to the wallet and had the funds drained. He asked me to explain what happened, so I went to check the movements and verified that the wallet had only one deposit from Binance and then interacted with a malicious protocol, meaning he definitely researched how to let the coins yield and fell into the trap of #DEFİ .
It was already over; you lost everything! The funds were drained and there is no turning back, unfortunately.
That's why I leave the warning that if you do not have experience with cryptocurrencies, do not venture into $DEFI or even in self-custody. Before learning, before becoming your own bank, it is important to learn how this universe works. It defines the deep web of finance, be cautious, and if you are a beginner and want to learn more about how this universe works, send me a DM on my profile so we can schedule a consultation (only for Brazilians 🇧🇷). Be cautious with your resources because if you do not take care of your money, someone else will take care of it for you. Stay at peace.
