I definitely agree that fraud mitigation is the key factor in a business like this succeeding or failing. Instant access to coins is certainly something that can attract the wrong type.
There are certainly pros and cons to self-custody - it's not for everybody. Given the value proposition of Bitcoin and the huge amounts of cryptocurrency stolen from exchanges, it's important for many people to hold their own keys. We're like that ourselves: we didn't want to choose between holding our keys and still being able to trade, which is part of why we built Sparkswap.
the huge amounts of cryptocurrency stolen from exchanges, it's important for many people to hold their own keys
Can you cite the data for your claim that there is less loss of Bitcoin from holding keys vs an exchange? I'd image the number of Bitcoins lost people people don't have their keys is large.
Comments
I definitely agree that fraud mitigation is the key factor in a business like this succeeding or failing. Instant access to coins is certainly something that can attract the wrong type.
There are certainly pros and cons to self-custody - it's not for everybody. Given the value proposition of Bitcoin and the huge amounts of cryptocurrency stolen from exchanges, it's important for many people to hold their own keys. We're like that ourselves: we didn't want to choose between holding our keys and still being able to trade, which is part of why we built Sparkswap.
Can you cite the data for your claim that there is less loss of Bitcoin from holding keys vs an exchange? I'd image the number of Bitcoins lost people people don't have their keys is large.
why don’t you just one of the many other providers?