Vitalik Buterin underscores the importance of self-custody for cryptocurrencies

Ethereum co-founder Vitalik Buterin urged self-custody of digital assets and wrote a Reddit post about choosing a multisig wallet.

Self-custody is important. And social recovery and multisig is a great way to do it.

A quick reddit post on how I think about choosing guardians for social recovery and multisig wallets:https://t.co/FY1iyJ6BFC

— vitalik.eth (@VitalikButerin) March 17, 2023

“Multisignature wallets are a simple and secure way of owning assets that can give you most of the benefits of self-custody,” he wrote.

Among the advantages of such a solution, Buterin noted the absence of personal liability for the entire security apparatus and the risks of losing funds in the event of a centralized structure collapse, “which seemed trustworthy.”

“I personally use a multisignature wallet to store the majority of funds, just like the Ethereum Foundation,” he added.

He also recommended conducting a test transaction with guardians at least once a year and selecting them based on one’s needs for reliability and speed of access to funds.

In November 2022, Binance CEO Changpeng Zhao called for self-custody of crypto assets amid the collapse of FTX. He was backed by former MicroStrategy head Michael Saylor.

In December, Paxful’s CEO Ray Youssef advocated for self-custody of Bitcoin instead of centralized exchanges.