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Comment by gjsman-1000 | Hacker News Reader

I actually had accounts with Gemini Earn, Celsius Network, and BlockFi, and money in all of them (as a just in case one fails thing). However, after the crypto crash earlier this year, and reading "Not your keys - not your crypto" for the millionth time, I pulled them all out and put them in an Exodus wallet. I calculated the APY loss but decided better safe than sorry - even though, in my head, I thought the odds of any individual one of them failing was extremely low, let alone all of them.

Holy !@#$ing cow. Dodged multiple bullets. At least I didn't share my financial plan at the time at the Thanksgiving table last year or it would be really awkward now (thank goodness my uncle took that role in a small capacity)...

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I don't know what your savings plan look like, but I hope your idea of diversification is not to have all of your savings in a varied array of crytocurrencies :-)))

Of course not - I only saw it as a way of diversifying the crypto portion of my diversified investments. But there was a bit of crypto - I'm just glad I didn't recommend others join me.

> the odds of any individual one of them failing was extremely low, let alone all of them.

that reminds me of the tranches in mortgage backed securities during the 2008/9 financial crisis.

See this scene from The Big Short https://www.youtube.com/watch?v=4WUGhteNlzM

> Exodus wallet

I've still got everything on just Coinbase, which I assume (?!) is reliable enough to not be at risk.

What's the "upsell" for using a wallet? The "not your keys" argument logically makes sense to me but it doesn't seem worth it from a convenience stand-point.

> Coinbase, which I assume (?!) is reliable enough to not be at risk.

This is what anyone could have said about FTX until suddenly it wasn't.

The upsell is complete access to the DeFi ecosystem. Not just the part your exchange wants to support. The convenience issue is overblown, at least for tech inclined people like commenters here would be.

My experience with my hardware wallet is that I put some stuff on it, left it for a year, and then when I went to go plug it in it wanted to update. The update will wipe it.

I can use my recovery seed phrase after, but as far as I’m concerned that’s an “oh crap” backup. For all I know I could have screwed up writing it down. Unlikely, but possible. Apparently it’s also possible to other software wallets to get the crypto off of there.

Frankly, if there aren’t ways for the average non-tech person to safely and reliably hold crypto there’s no point. Most of my stuff is on Coinbase and I’ve always figured that if that ship goes down the whole thing will come crashing down anyhow.

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