Imagine a world where people have no control over their lives and are confined to systems that leave them powerless. Picture a world without self-sovereignty — the ability to take control of one's finances and destiny. This was our world before blockchain technology and cryptocurrencies.
Fortunately, new forms of assets like cryptocurrencies are freeing individuals from the limitations of traditional currencies and allowing them to become self-sovereign and independent. This is happening now, and it's important not to miss the opportunity to take control of your financial future.
What does it mean to be your own bank?
The concept of self-sovereignty empowers individuals to make their own decisions without being subject to the control of powerful central authorities. This idea has been around for quite some time.
Self-sovereignty implies that every person has the power and freedom to make their own decisions without being controlled by others.
With the rise of crypto, we are seeing the beginnings of a new shadow economy where control is distributed rather than centralized. Those who support this new financial system can now become their own banks without needing the traditional one.
Who controls your assets?
When you put your money in a bank, you partially lose control of it. It becomes the bank's money to do as they see fit, and only a portion is insured. Bank runs are still common today in many parts of the world, and we've seen the collapse of the traditional banking system many times in the past century.
Even in crypto, there are similar "custodial" systems. Some of the largest crypto exchanges, like Binance and Coinbase, offer custodial wallets, meaning users must hand over their funds to these exchanges for "safekeeping." History has once again proven that using a custodial wallet does not align with being your own bank.
Several exchanges have misappropriated customer funds by being reckless with their security measures or gambling with these funds.
The future of crypto wallets is non-custodial. These wallets give you sole access to your funds, which are protected by a private key only you can control. Non-custodial cold wallets are safer as there is no central database for hackers to break into and steal your private key. You can also access your money anytime, regardless of what happens to the company that made the wallet.
Non-custodial wallets and self-sovereignty
If you use a major crypto exchange wallet that goes down or changes its policies under government pressure, you may be unable to use your account or retrieve your assets. If it goes bankrupt, you might lose your coins with little hope of getting them back.
However, if you use a non-custodial wallet and keep your private key safe, this can't happen. Your money is stored on the blockchain, and you store the private keys.
Learn more about why you shouldn't keep your assets on exchanges.
Why you should become your own bank
Imagine you live in a country where its currency is losing value quickly. You're trapped in a failing system, and your wages are worthless before you know it due to hyperinflation. You can't escape because foreign investors won't exchange your money, and everything you buy is with a currency that's only becoming increasingly valueless.
Similarly, we can look back to bank runs at the turn of the century, which left many people without any money. While some wealthy individuals may have been able to avoid the worst of it, ordinary people were left to suffer the consequences.
How to become your own bank
If you're a cryptocurrency user, you can step outside some systems that control your financial fate. One benefit of storing your money in crypto and in a non-custodial wallet like Tangem Wallet is that it remains unaffected by political instability or hyperinflation that may affect the value of many national currencies.
Cryptocurrencies have a global reach and are not restricted by borders. They are also entirely inclusive, meaning everyone has the same access to the system regardless of background.
This is important because approximately 1.7 billion people worldwide don't have bank accounts. With cryptocurrency, anyone can get a wallet and start making international transactions. You don't need permission to invest in crypto.
Consider using a crypto wallet instead of a bank account to send money worldwide at a lower price than traditional payments. If you store it in a non-custodial wallet, there is no risk of a bank run or a hacking attack.
Withdrawals from a wallet are also easier and safer. There is less chance of anyone forcing the wallet owner to do anything they don't want to do. The wallet owner can withdraw their funds without having to ask for permission.
Moreover, you can do business outside your country without bureaucratic approval. Many Bitcoin supporters even see the cryptocurrency as a hedge against inflation, a kind of "digital gold" that stores wealth and value in hard times.
With Tangem Wallet, you are your own bank
Cryptocurrency challenges traditional economic systems by creating a new, fair, self-sovereign economy. In addition, non-custodial wallets literally give you the keys to your bank. Tangem Wallet holds a record of producing over a million wallets, and none has ever been hacked. It's simple to use and gives you peace of mind with its unparalleled security features. Get Tangem Wallet and start your journey to self-sovereignty. By freeing your money, you can gain your freedom.