My community has been pretty open to trying out self-custody, of bitcoin in particular. I think I'm ready to be the first of anyone I know IRL and move off an exchange.
A simple google search that Robinhood (extremely popular among young crowd newer to bitcoin) is not FDIC insured is leaving many people wondering if hardware is right for them. However, most of there assets are either on Robinhood or Coinbase.
Before I go off to research Ledger Wallets and the process to onboard, I want to make sure I don't make any dumb mistakes like the ones I've seen so far on this sub:
- digital seed phrase storage (LastPass)
- lost seed phrase
- not knowing how to transfer coins off custodial exchange
- choosing digital wallets
- sending on correct network/chain
If anyone wants to share any comments or thoughts I'm using this post to hold myself accountable for doing proper research to not mess up and also will circle back with any thoughts I have on Ledger products. Thanks
Currently, I'm under the impression that cold-storage should be exactly what it sounds like, cold and not frequently moved. I think many people are worried about the circumstances under which they want to liquidate their crypto and having it on a hardware wallet creates extra steps in that process. However, currently not seeing that as an issue at the moment other than the tax implications of moving off exchanges in US legal system. I remember hearing that transfers were being considered to count as taxable events but this article seems to clarify that that is not the case :)
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