Crypto should be transferred off exchanges: Finder report

Crypto should be transferred off exchanges: Finder report

  • The majority (64%) of Finder’s panel says crypto isn’t safe unless stored in a personal wallet.
  • 62% of Finder’s panel think crypto holders should transfer their crypto off exchanges.
  • 67% of panellists believe it’s best to store crypto on hardware wallets.

Storing cryptocurrency on exchanges may now be out of the question, according to Finder’s latest Cryptocurrency Wallets Report.

The majority (64%) of Finder’s panel of 56 cryptocurrency and fintech specialists don’t think cryptocurrency is safe unless stored in a wallet to which they alone control the private key.

In fact, 62% think consumers should move all their crypto off exchanges and into non-custodial wallets. Only 34% think that isn’t necessary, while the remaining 4% are unsure.

Bit5ive CEO Robert Collazo is part of the majority who think that crypto holders should transfer all their crypto to non-custodial wallets. According to Collazo, when using custodial wallets “you’re putting your funds’ trust in the hands of someone who may or may not be capable to manage them.”

Seasonal Tokens creator and founder Ruadhan O agrees, arguing non-custodial wallets are “one of the best and easiest solutions to the current crisis in the credibility of centralized custodial platforms.”

However, Ruadhan O acknowledges that non-custodial wallets also have risks attached and may still be vulnerable to hacks.

Even so, 67% of panellists feel that the best way to store crypto is on hardware wallets. Only 10% say it’s best to store crypto in a software wallet, another 6% say it’s paper wallets, and an even smaller 2% were in favour of keeping cryptocurrency on exchanges.

The remaining 15% feel that other methods are better, including memorizing your seed phrase and destroying all paper copies of it or keeping your funds in a multisig vault.

CEO and founder of Omnia Markets, Mitesh Shah, believes storing crypto in hardware wallets is the best method because a “general rule of thumb is that any coins kept on exchanges are not truly yours. In a decentralised world, self-custody is always the safest and best option for storing your crypto.”

Standard DAO CEO Aaron Rafferty agrees but adds that better wallet solutions are necessary if crypto adoption is to increase in the coming years.

“A hybrid solution for centralised exchanges will be imperative so holders will not be subject to the same downfall as the recent results of the Celsius bankruptcy where it was ruled in Celsius’ favour for ownership over the assets held by the exchange,” argues Rafferty.

“Regulations and better wallet solutions will need to be present in order to spur a true adoption-based bull-run in 2024-2026,” he said.

Business News