Crypto self-custody is a 'basic human right' but not without risk: Community

Ethereum co-founder Vitalik Buterin has warned that the risks of having bugs in smart contracts are always present when we opt for self-guard.

The FTX debacle sparked increased calls for crypto self-custody this week, including Binance CEO Changpeng Zhao describing it as a “basic human right.” However, some warn that there are always risks when you choose to keep your digital assets on your own.

Vitalik Buterin, the co-founder of Ethereum, pointed out on Twitter that while decentralized finance (DeFi) and the ethic of self-preservation were popular this week, there are still risks. According to the Ethereum co-founder, bugs in smart contract code are among those risks. To avoid risks, Buterin also mentioned some tips such as code simplicity, audits, formal verification and defense in depth.

Apart from smart contract bugs, the transfer of crypto assets after death has also become a topic on social media. Bruce Fenton, an executive at brokerage Watchdog Capital, referred to self-custody tests like asking the next of kin to collect their coins as if they were dead. According to Fenton, without a plan for his legacy, self-custody is incomplete. "It's not a gift for anyone," he argued.

Tom Dunleavy, research analyst at crypto-data platform Messari, brought the self-custody request into the conversation. The analyst