This is very good advice @justyy…not your keys not your crypto. If we keep our own crypto in our own wallet, we’re good.

I think people get confused on how crypto or rather, the “custodial-asset relationship” works. Especially outsiders who have no experience with crypto.

In your example, the exchange’s weak balance sheet is the problem, not Bitcoin or other good tokens. When people panic, they sell, but the fundamentals of the good tokens still remain the same. But when people sell, and token prices decline, people who do not understand crypto say that crypto is the problem.

And it's not just crypto that has this dynamic. When Lehman Brothers (the US investment bank) filed for bankruptcy in 2008 at the height of the global financial crisis, they filed because their balance sheet was financially weak…not because any underlying asset that Lehman Brothers held, like Exxon Mobil stock or Apple was weak.

It's not the assets (tokens) that are the problem, it's the balance sheets of these companies.

Thank you for this reminder :)