Crypto Wallet Use Has Skyrocketed Worldwide; What Sparks the Trend?

Crypto Wallet Use Has Skyrocketed Worldwide; What Sparks the Trend?

Recently there has been a surge in people withdrawing money from centralized exchanges and into self-custody wallets. According to Glassnode data, in November 2022 alone, the outflow from exchanges stood at 106,000 Bitcoin a month, much higher than at any other time in the past. This indicates that investors now believe it is safer to keep their own keys than to trust a third party to store them. 

What Triggered the Surge?

 So, what is the trigger behind this exodus from centralized exchanges and into self-custody wallets like ownrwallet.com? First, it is the sudden increase in risks associated with centralized exchanges. This risk has increased since the collapse of FTX. While people know that small exchanges can collapse at any moment, no one expected that the third largest cryptocurrency exchange, domiciled in the US, would collapse instantly and with no warning. This has sent the message that no exchange is safe, hence the need for self-custody. Essentially, investors are becoming more aware of the mantra, “not your keys, not your coins.” 

The other reason is that most crypto wallets today have become more sophisticated in their product offerings. In the past, your average crypto wallet only offered custody, and you had to move crypto to a centralized exchange if you wanted to sell. This meant missing out on good crypto trades that require fast action. This is no longer the case, though. Today, the average cryptocurrency wallet has the same features as a centralized exchange. For instance, the OWNR wallet allows you to buy and sell crypto, and has a wide array of ERC-20 tokens listed. This makes it perfect for everyday trading. 

Investors are also turning to self-custody wallets because the market is bearish, and any potential for major gains is postponed until 2024. For long-term investors, this means leaving your cryptocurrency assets untouched for years. With the rate at which cryptocurrency exchanges go bankrupt, leaving such assets at an exchange is not tenable. That’s why many people are choosing to move their assets to self-custody wallets. With a self-custody wallet, as long as you have the keys, you are sure that even if you leave your assets untouched for a decade, you will still find them there.

What to Look for in a Good Self-custody Wallet

When it comes to self-custody, one of the key factors you need to consider is that no one should be able to access your assets but you. This is what guarantees you complete security. One wallet that meets this criterion quite well is the OWNR wallet. With this wallet, you have complete control over your assets; not even the OWNR team can access them.

Another factor to consider is the number of assets the wallet has listed. Unlike in the past when only Bitcoin and Ethereum were assets worth investing in, today, tons of tokens hold much more potential than these two. As such, consider using a wallet that allows you to store various tokens. With a wallet like OWNR, you can store BTC and other tokens.

Lastly, consider a wallet that allows you to trade assets without getting out of the wallet. This ensures that you stay safe at all times, even as you take advantage of the moves that come by at different times in the crypto market.

Recap

With the recent collapse of the FTX cryptocurrency exchange, most investors are turning to self-custody. This is because no cryptocurrency exchange is safe, no matter how big. One of the best crypto wallets that have benefited from this move is OWNR. This self-custody wallet offers several other benefits, including an inbuilt DEX and multiple asset storage. 

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