self custody wallets pain points

“And I am absolutely *terrified* to move it off the exchange.”

“I know mine isn’t safe where it is.”

“The problem is, I’m so scared to move it.”

“I work in tech, and I’m still not comfortable moving it.”

“Then to top it all off, I have the memory of a fish. I’m scared I’ll lose my keys.. even though I do have several backup plans for those.”

“Nvm, I kept reading. I never know what’s troll and what’s legit in here. Bitcoin is such a beast of a new concept to me”

“The gas fees are way too high for me!”

“If I would transfer the amount I DCA weekly into my own wallet, it would eat up too much.”

“Some could say to withdraw monthly then...but this also would cost too much.”

“Which raises another problem. The volatility of fees. Imagine the outrage if banks charged us $1 to transfer money on some days, but then other times when we really needed it the fees were bumped up to $5. Yet we accept this in crypto. We have a way to go.”

“for me it is one of the few problems that ETH must solve”

“I agree ETH fees are too much. But if one day you lose it all for having it on exchange then you would think the fees were better. But I understand you well and if you have diversified custody, then it is ok.”

“As much as I want to buy ETH, this is the reason why I did not choose to DCA it.”

“The coinbase wallet is marketing for the exchange, it could be called Banana Wallet and it would have the exact same functionality. If your intent is to sell crypto for fiat, then you would want it on the exchange, not the personal wallet. Probably the worst thing all these exchanges could have ever done was make their own wallet with the same name. It just causes confusion for newer people who aren’t aware of the difference between a personal non-custodial wallet and an exchange.”

“I knew it wasn't the same as the exchange but I didn't expect it to be so difficult to cash out since there was an option for that.”

“By design a personal wallet has no way to cash out. By cashing out you are connecting it to an exchange, in this case your Coinbase account which has a fiat on/off ramp to do the transaction. It’s all a hot mess of confusion and the feature shouldn’t be there imo it just creates problems.”

“yes, both Coinbase and your Coinbase defi wallet are Coinbase products. but Coinbase accounts are custodial and the Coinbase defi wallet is a self-custody wallet so they don't work at all in the same way.”

“in any case, no, you can't pay for swapping BTC for USDC with Bitcoin. that's an entirely different function altogether vs. cashing out which you can't do an actual cash out in the defi wallet, only from your regular Coinbase account app or your Coinbase account website can you do that.”

“There's a bit of an education problem here. Self custody wallets aren't meant for exchanging for fiat. Self custody wallets are for P2P transactions, actually using the coin rather than hording it until price goes up and selling it for fiat.”

“I always see the phrase "Not your keys, not your coins" thrown around, and I was wondering if keeping my coins in a software wallet is part of that.”

“does using software wallets (eg. I use Exodus) still count as being more safe than having the coins on exchanges?”

“Why do people almost never mention these software wallets when it comes to being secure?”

“My mistrust to hardware wallets mostly stems from company risk, I.e whoever builds those things can be forced by government to place back doors. Years later your hardware wallet malfunctions so you need to buy a new one, and without knowing you may be buying a compromised one. Anyways, it’s tradeoffs, ledger seemed like a good deal until the shady announcements started and the database leaks of customers contact info.”

“I used to trust software wallets, but then i took Atomic Wallet to the knee”

“I only trust hardware wallet. I've read so many hacks of software wallets like Trustwallet.”

“If you don't have enough invested to buy a hardware wallet (which costs like $100), then I wouldn't worry too much about losing whatever you do have...you won't be a natural target (although that does not mean 0 risk) But I mean look no further than atomic wallet that was just hacked...I had coins on it (not most of mine..I just used it because I could store a bunch of different crypto without having a million different wallets). There is good reason to not trust software wallets.”

“Coinbase requires verify wallet.”

“I live in EU and when i today bought some BTC and tried to send it to my Trezor HW wallet Coinbase now asks for me to verify wallet ownership.”

“I tried message signing but all the wallets that are supported is: OKX wallet, Ledger Live, Blockchain.com, Phantom, Bifrost wallet, Leather and Xverse. So no Trezor at all!”

“The other method is small deposit test which means sending a small amount of BTC from my HW wallet to coinbase which i have done now twice but the window just refreshes after coinbase recieves my BTC as if it won't accept a Trezor wallet.”

“The verification is needed in the EU because of FATF travel rule legislation.”

“No you have to verify that you own the wallet if you select self transfer hence the problem.”

“Then to top it all off, I have the memory of a fish. I’m scared I’ll lose my keys.. even though I do have several backup plans for those.”

“Repeat step 2 until you fully grasp the understanding that your private key, represented by your seed phrase, is your wealth. Disclosing that seed phrase is transferring your coin. Write the seed phrase on paper, then hammer it on steel and don't lose it.”

“If I put the seedphrase on metal, it could be discovered by airport scanners and read by someone. If I plan move overseas in the future, what is the best way to store my phrase? I currently just use paper.”

“I’ve heard sealing the paper in cold laminate is good to protect it. I would imagine you can get through the airport with that no problem”

“I cannot remember a long phrase. I cannot even access my Reddit vault. So to each their own. It's all about tisk or risk management and what risk you can tolerate. Otherwise there are cryptocurrency ETFs and other options in regulated markets.”

“I've also heard of people losing a bunch because they backed up their hardware wallet's seed phrase in an online password wallet. IMO, the best relatively simple setup, is to make a physical (steel plate, stamped washers, etc.) backup of the seed phrase the wallet generates.”

“You’ll still be able to restore your wallet and recover your funds as long as you have your seed phrase.”

“I had $2500 in my Cwallet account, and suddenly, they asked for KYC verification. I submitted my documents correctly, but my KYC failed without any explanation.”

“When I contacted Cwallet support, they told me to reach out to Sumsub (their KYC provider). Sumsub then told me to go back to Cwallet, saying it’s their decision. I’m stuck in an endless loop, with no way to redo my KYC or withdraw my funds.”

“Cwallet has completely stopped responding to my messages. This is blatant theft—even betting websites allow users to resubmit KYC, but Cwallet is denying me access to my own money with zero transparency.”

“They have no option to redo KYC and are ignoring my attempts to resolve this.”

“I'm having the same issue .....I accidently sent xrp without Memo so I contacted support to fix the issue ... They made me do kyc my account verified they had me add 2fa and changed my login password and payment pin so I did ... Then when I go back to access my funds I get an error message saying I can't withdraw because of suspicious activity .... Then support just started ignoring me the won't answer my emails they even made it to where I can't contact them through support in the app”

“I’m having the same issue with Mad. I had to swap to Eth but then it tells me the transaction did not go through and it takes the fee anyway.”

“It did not. CoinBase does tell you it’s only tradable on Wallet. It’s MAD.vip, a little purple guy as the logo. I have never traded a meme coin except Doge a few years back but decided to try to play the momentum. Held for 3 weeks and it tracked well and I was up about 4x Then when I went to swap it to ETH it just disappeared. It shows I still have the coins but no balance and I have paid gas fees that were not refunded on all 5 tries. I have spent over 4 hours on chat with them and they have no solution. Absolutely criminal that a publicly traded company can get away with such a thing”

“Yeah it is criminal I have 4 coins with no balances anymore which is bullshit it means it’s no longer traded on coinbase anymore or not tradeable in USA exchanges anymore. It’s what gives me the biggest shits about coinbase. I don’t use it anymore I use coinspot now”

“I've moved my Eth to the ledger, same with ETC and few other coins. I'm struggling with Ergo and Ravencoin though. They are not supported on the ledger so they are still on exchanges. Anyone know what's the best wallet to use for Ergo and Ravencoin?”