The Collapse of Institutions

The Importance of Custodying Your Own Crypto in Light of Recent Bank and Exchange Failures

Disclaimer: The material in this article is purely educational and should not be taken as professional investment advice. Invest & budget at your own discretion. Affiliate links are in this article (by clicking on these links you help me out with no additional cost to yourself). Please enjoy the article!

The collapse of Silicon Valley Bank and FTX highlights the importance of crypto and the need for individuals to custody their own crypto. Traditional banks, like Silicon Valley Bank, have been the go-to for companies to store their money for decades, but the limitations of FDIC insurance have become clear. In the case of Silicon Valley Bank, many tech companies were left with uninsured deposits and uncertain financial futures. FDIC deposit insurance maxes out at $250,000, leaving companies with millions or even hundreds of millions of dollars deposited at the bank with limited access to their funds.

On the other hand, crypto provides an alternative that could have prevented this disaster. Crypto is decentralized, meaning that it’s not controlled by any central authority, and is transparent, meaning that all transactions are publicly visible on the blockchain. Crypto’s transparency means that companies can see where their money is at all times, which is…