Jul 18•5 min read
Self Custody Your Bitcoin
Self-Custody Keeps Your Bitcoin Safe
Do you own Bitcoin? If you do, thank you for taking the first step toward financial sovereignty. If you have not decided to purchase Bitcoin yet, that is ok too, as everyone goes at their speed when it comes to learning about Bitcoin.
Bitcoin is something that, once you understand it, changes your whole worldview. Anyway, back to the topic at hand. Most people who start with Bitcoin buy their Bitcoin from an exchange such as Coinbase, Kraken, OKCoin, or Binance. These platforms make it extremely easy to set up an account and purchase your first Bitcoin. You can sign up for an account and buy Bitcoin in 5 minutes.
Think of these exchanges like training wheels like we learned how to ride a bike. Exchanges get you used to owning Bitcoin and other digital currencies, but after a while, they become wholly inappropriate for holding your wealth with them long term.
Did you know that when you buy Bitcoin and keep it on these exchanges, you don't own the Bitcoin; your account is credited with an I.O.U. It may look like you own it, but you don't not until you send it to a wallet that you own.
These exchanges don't want you to know this and are incentivized not to tell you. They do this because they want you to keep your assets on their books, giving them the ability to profit from your holdings. The last thing they want is for you to withdraw your Bitcoin to your non-custodial wallet. Here are a few reasons why you should always self custody your Bitcoin.
1. Exchanges Won't Give Your Bitcoin
Imagine this scenario. The economy starts breaking down at a rapid speed, and there are runs on the bank. Everyone is freaking out and looking to get their hands on any assets of value. You remember that you have a bit of Bitcoin saved on an exchange.
You go to log into your account, but the website is down. You try jumping on the phone to speak to a customer service representative and telling them that you need your Bitcoin right now. The person on the other end of the phone tells you that they cannot fulfill your request right now and to try again in a couple of days. As you can see in this scenario, you don't have access to your Bitcoin because you didn't self custody your Bitcoin.
If you self custody your Bitcoin, you won't be in this situation if shit hits the fan.
2. Government Orders Exchange To Freeze Your Assets
This scenario is more likely than not to happen now that anyone who doesn't ascribe to the mainstream line of thinking could conceivably be considered a "domestic terrorist" and have their assets seized by the government. The government is turning its attention to cryptocurrencies in general and considers it's regulation a " national security issue." In layman's terms, this means they want the power to crush crypto owners without the oversight of Congress.
Think about what other laws have been passed in the name of "national security"? The Patriot Act comes to mind, which is still with us today! The Patriot Act gave the government unprecedented power to spy on us, our communications, and our financial transactions. Once laws are in place, they are never taken away. Congress is trying to pass the America Compete Bill Act of 2022.
This bill ostensibly is supposed to help the United States stay competitive with China but deep in the recess of the bill is 31 U.S.C. § 5318A. This gives unprecedented and unchecked powers to the treasury department to ban you from making ANY financial transaction dollar or crypto. This is something that should chill every American to the bone. Here is a link to a summary of the bill.
If you self custody your Bitcoin, you don't have the worry about the government seizing your Bitcoin assets because you have the private keys to access your Bitcoin. As long as you have your seed phrase or a backup, there is nothing the government can do to get them. Tell them you lost your seed phrase in a boating accident. Ooops.
How To Buy and Hold Your Bitcoin
If you are interested in holding your own Bitcoin, here are a few wallets you should try.
The best way to buy your Bitcoin without going through an exchange is to buy it and have it sent directly to your non-custodial wallet. You can altogether skip the exchange route. Check some of these vendors:
Becoming a sovereign individual is needed now more than ever. You may even want to consider obtaining another passport just in case you need to make a haste retreat for a deteriorating situation. This is an excellent place to start. Check out PlanBpassports.
I can't stress enough how vital the self-custody of your Bitcoin is to your financial freedom. If you have questions or need help, let me know! Always happy to help people begin the Bitcoin journey!
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