Many individuals mistakenly assume that entrusting their cryptocurrency assets to centralized exchanges ensures their safety. However, what often goes unnoticed is that on centralized exchanges, these assets are held in custody by the exchange itself, which ultimately controls users’ access and private keys. This is critical because if a centralized exchange has a liquidity crunch and cannot service customers’ withdrawals, it will restrict customers’ access to their own assets. Besides, the whole ethos underlying DeFi and Web3 is ownership. Therefore self-custody is the only way.
It’s fair to say that the examples of this happening are countless; and that’s even before considering the sentencing of CZ, Binance CEO, for money laundering and major mismanagement of user funds this week.
In the event of significant liquidity issues, such as the collapse of exchanges like FTX, users may struggle to retrieve their assets and risk losing them indefinitely. As such, embracing self-custody is paramount. Through self-custody, users retain complete ownership and control over their assets and their security. Part of Savl’s overarching mission involves educating individuals about this critical distinction.
Certainly, centralized exchanges play a crucial role in the cryptocurrency ecosystem, allowing users to buy, sell, and trade digital assets. However, it’s imperative to emphasize that storing assets on centralized exchanges poses inherent risks.
Anyone reading this with assets in storage on an exchange should move to a self-custodial solution as soon as possible.
Yes, we aren’t suggesting that all centralized exchanges are massively risky all of the time, we are simply saying that for long-term asset storage, self-custody is the way for ultimate security and unrestricted access. It’s also important to be aware of other security risks in the space.
Major market fluctuations – which we’ve seen recently with record-breaking Bitcoin highs – often coincide with an uptick in phishing attempts, scams, and fraudulent activities, as malicious actors seek to exploit investors’ heightened emotions (especially true when the Fear & Greed index is riding high). It’s fair to say that while excellent for market sentiment, a bull market does require enhanced user protection measures –because demand explodes.
Enter KYT, or Know Your Transaction. It’s a feature of the Savl wallet that allows users to perform risk assessments on any crypto wallet address, protecting them from unknowingly engaging with tainted or illicit funds. It’s protection at the very highest level, which in this market, is more important than ever.
Savl is a self-custodial crypto and Web3 wallet that combines industry-leading encryption, unique functionality, and intuitive design. Launched in 2020 as a solution to the fragmented nature of existing wallets, Savl is a sleek alternative to complicated experiences. It operates across 100+ countries, with an impressive track record of 900,000 wallets generated. Its innovative features set it apart in the wallet landscape, including a built-in social community, encrypted messenger, and its unique Know Your Transaction (KYT) function, enabling users to conduct risk assessments on wallet addresses to safeguard against illicit activities. Savl safeguards user assets with a robust set of security measures, including a 24-word recovery phrase, anti-theft pin codes, and optional FaceID authentication, all powered by cutting-edge cryptographic algorithms and protocols. With its comprehensive suite of services, users can effortlessly engage in buying, selling, storing, and swapping over 250 cryptocurrencies, along with the ability to stake assets and create multiple sub-accounts for optimized asset management. Savl also facilitates the purchase of everyday products and services in over 190 countries using cryptocurrency, while its advanced WalletConnect integration grants access to the Web3 world and thousands of decentralized apps (DApps).
James Toledano is Chief Operating Officer at Savl. An established technophile and early Bitcoin investor, James began his career at major US publisher Ziff-Davis, before moving on to work at UK’s first web development agency, Webmedia. He later contributed to the establishment of the new media division at Virgin Radio. A tech pioneer, in 1999, he launched the first legal music download platform, Brandnewmusic, in partnership with Apple — before Napster, thereby setting a standard for the digital music industry. He later spearheaded the sales and marketing effort at the UK arm of MP3.com, significantly contributing to the expansion of the brand. While at SafeNet (Thales), he developed advanced anti-piracy solutions for leading US music labels and broadcasters. In addition to digital music, James held the position of Vice President of Digital at Ford Models and founded a successful digital transformation agency in New York. Throughout his career, James has advocated the use of technological innovation to achieve success, an ethos he continues to apply in his stewardship at Savl.