Your Crypto Will Be at Risk on Telegram (And That’s Ok)

TL;DR

• In case you missed it, Telegram’s new in-app crypto wallet is custodial. That means Telegram controls customers’ wallets, however lets them entry their funds when/how they need.

• Telegram ain’t the place to retailer the majority of your crypto funds (that is a job for Ledger and Trezor wallets). As an alternative, it is perhaps a spot the place you retain a pair hundred bucks (max!) to make small in-app funds with.

• Custodial wallets have their place on this planet (and that is one among them).

Full Story

Telegram is that pair of denims you have not worn in a couple of yr.

(That sentence should not make sense proper now, however allow us to prepare dinner…)

In case you missed it, Telegram’s new in-app crypto wallet is custodial. That means Telegram controls customers’ wallets, however lets them entry their funds when/how they need.

(Very similar to a financial institution holding your fiat money).

The chance is: if Telegram will get hacked/goes bankrupt/decides to rob its customers – your crypto goes with it (just like consumer funds on FTX).

This is why that danger greater than okay, in our minds:

Telegram is that pair of denims you have not worn in a couple of yr.

Certain, there is perhaps a $20 invoice hiding within the again left pocket…but it surely’s not like you are going to retailer your life financial savings there!

That is all to say: Telegram ain’t the place to retailer the majority of your crypto funds (that is a job for Ledger and Trezor wallets). As an alternative, it is perhaps a spot the place you retain a pair hundred bucks (max!) to make small in-app funds with.

Utilizing the excessive degree, Fort Knox-like safety of a self-custodial pockets for a use-case like that’s like bringing a bazooka to a pillow struggle.

It is pure over kill, plus: the complexities of self custodial safety are prone to scare customers off.

Custodial wallets have their place on this planet (and that is one among them).