The Definitive Bitcoin Custody Tier List: 🟠S-Tier: Collaborative 2/3 Multi Sig 🟢A-Tier: 2/3, 3/5, Multi Institution 🔵B-Tier: (Reputable) Exchanges, ETFs 🟣C-Tier: Single Sig + Passphrase, Single Sig 🔴D-Tier: Hot Wallets, Paper Wallets

Single sig with sufficient passphrase gotta be A- No way it's C.

Passphrase is a single point of failure

Theres no way a single sig with a good passphrase is below an exchange. I dont get it.

@MitchellAskew Ya if you test everything before funding and have proper backups and understand everything it’s better than exchanges imo. People also get sim swapped at exchanges too

@pastorcoin Yeah sim swaps are a big risk for exchanges I just imagine the odds of someone losing their passphrase are much higher than the odds of the passphrase actually defending their funds (obviously the recent cc thing is the exception to the rule)

F-Tier - Cold Cards

That's an S-Tier tier list. Agree with the controversial takes. Disagree on multi-institution custody. Instead of trusting that custody is being handled properly, you trust that the processes for allowing withdrawals are properly safeguarded. It doesn't sound much safer to me.

Good point Probably needs to be in B-tier

excellent video topic

Thank you sir Would love to see you and @OptimistFields take a stab at something like this

Delete your account idiot, BIP38 paper wallets are the safest way to custody your coins, multisig is one of the worst.

Single-sig + passphrase should rank above exchanges/ETFs. It shouldn’t be classed with single-sig alone. Someone with single-sig + passphrase over the last 10 years would not have lost his Bitcoin in the Celsius collapse, FTX collapse or Coldcard hack.

I think a single SIG and a passphrase or a single SIG is better than ETFs. And I think exchanges are better than ETFs. And I think single SIG is better than exchanges.

Agreed. It’s unfortunate, but after last week CEX’s and ETF’s have surpassed single sig self custody. Risk just isn’t worth the benefit anymore. Personally moving to a 2 of 3 collaborative multi Sig vault with @unchained soon.

B before C is ridiculous Everyone is discounting single sig + passphrase because someone did a shitty job — not because the concept is debunk And if C actually fails, BTC is dead

I would put single sig w/ passphrase at least B-tier. Yes, if you forget your passphrase or if it's too weak, you're screwed. However, at least it would be your own fault vs an exchange/ETF going down. Also, you have true ownership of your Bitcoin vs an exchange/ETF.

Wrong

I get why you put exchange at B and made some arguments in favor of it But to push back on the 6102 point: It doesn't need to be overt. It can just be subtle rehypothication. Gag orders + gov just takes underlying coin and leaves the IOUs there. A part of the reason for self custody is the game theory of taking bitcoin out of circulation and fucking over the banks govs etc that like to play Casino Shell Games with the financial system.

That’s a good point I like Jan 3rd, “hold your own keys” day or whatever Even semi frequent withdrawals force the exchanges to stay on their toes

And that's another reason why Medium of Exchange is increasingly important over the coming years.

This guy is underplaying the risk of multisig, introducing complexity means there’s a chance that you yourself might cause error and lose your funds

how single sig + passphrase is worse than exchange xDDD coldcard got your brian cooked

Bitkey? under S or A tier? thanks

KYC options above single sig w/ strong, backed up passwords? Nah.

A properly done paper wallet is s tier. Infact the reduces the most amount of trusting anyone. Recommending multi institutional custody will be the largest catalyst for bitcoin to get stolen in the future, just wait and see.

Agree struggle with order of B / C, but it's a bad time to argue...

What about multi vendor multi Sig?

Theres no way exchanges and etf ranked higher than single sig w passphrase

This is insane

Enough podcasters. This is retarded. Generate a proper priv/pubkey pair or BIP39 mnemonic with proper entropy and be done. privkeys and mnemonic seeds can go on paper into safe.

Why does DIY 2/3 not even rank on here?

It’s in A tier

Cool, I just need to learn how to tesd

@MitchellAskew And how to write.

@MitchellAskew 🤣 It's my damn phone keyboard

ETFs arent bitcoin my guy

Aint no way a proper single sig setup is under an ETF. Cmmoonnn

Do you know how many horror stories there are with "reputable" exchanges freezing assets with no reason indefinitely? When wall street raids your ETF and the feds give them a bail out enjoy the trickle down.

Here's your S tier custodial service's shitty app.

This is horrifically wrong.

would like a word, sir

Single Sig plus Passphrase is at a minimum B tier. especially considering passphrases can be over 100 Bits of Entropy fairly easily.

Etf's aren't bitcoin