Why self custody matters : the fall of centralized exchange

The promise of crypto was never about trusting middlemen. It was about removing them. But somewhere along the way, we started treating centralized exchanges like banks — and paid the price.

The Illusion of Safety in Centralized Exchanges

The core vision of crypto has always been rooted in decentralization — giving people the power to control their own money without having to rely on third parties. However, a large portion of the crypto community still stores their digital assets on centralized exchanges (CEXs), mirroring the traditional financial system they once sought to escape.

Events like the collapse of FTX, along with countless hacks and frozen withdrawals, have exposed just how fragile these platforms truly are. These aren’t isolated failures — they’re warnings. Centralized entities can be compromised, mismanaged, or act against users’ interests, leaving people locked out of what’s rightfully theirs. And the hard truth remains:

If someone else holds your keys, they hold your crypto.

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