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Self Custody 101
Episode 6822nd August 2022 • Generational Wealth with Cryptocurrency • McIntosh
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What is the best way to keep your assets safe? You don't have to depend on any company, defi product or person to manage your assets. You can control your coin and keys. It is the ultimate solution to keeping your future safe.

News and Links

https://www.theverge.com/2022/4/6/23013420/jack-dorsey-block-hardware-crypto-wallet-bitcoin-rock-preview

Podcasting 2.0 Apps Available at http://newpodcastapps.com/

I can be reached by email at mcintosh@genwealthcrypto.com and on twitter at @McIntoshFinTech. My mastodon handle is @mcintosh@podcastindex.social. Looking forward to hearing from you!

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https://genwealthcrypto.com

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Transcripts

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It's August 22nd.

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This is episode 68 of Generational Wealth Cryptocurrency.

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I'm your host, MacIntosh.

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Today we're going to be talking about self-custody.

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Hey, everyone.

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No one on this podcast is a financial advisor.

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All information presented on this podcast is for informational purposes only.

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Now that we have the legal stuff out of the way, let's jump on in.

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All right, everybody.

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It's been a week.

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It has certainly been a week.

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I am going back right now and looking at the weekly close.

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It's Sunday night as I record this, 11.30 p.m. Central Time, and it really hasn't been

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that great a week.

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Last week when we were discussing this, it was published on the 15th of August, I recorded

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on the 14th.

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It was somewhere around $24,000.

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It actually went a little bit higher on the 15th.

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We did hit $25,239, and it has steadily declined all the way down to the weekend on the 19th

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with a low of $21,400, and right now that's actually what we're at.

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We went slightly below that, excuse me, $20,700.

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Right now we're at $21,400, and it is showing signs of weakening.

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I would not be surprised, honestly, when the morning markets open unless the Dow and S&P

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jump ahead for some reason.

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I think we will see lower lows, most likely.

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Just my opinion, certainly not financial advice, you know the drill.

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The Bollinger Bands are opening up, one of the indicators, which typically, even though

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it actually dipped outside of those and climbed back up, they are still continuing to open,

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which does indicate volatility.

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Your RSI, at least on the daily, is actually fairly low, which could indicate that it would

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go up or try to go up.

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I believe if we drill down maybe a little lower, that's looking pretty good.

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The 4-hour is quite overbought, though.

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It is up to 80, if I'm reading this correctly, actually 85, 93.

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The 4-hour is certainly looking for, and that would cover the next 24 hours or so.

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Typically, we could see some sell-off.

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It would not surprise me at all.

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If it continues to stay down, we will go right back down to $17K.

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We'll see what happens when we get there.

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It would be a great time to buy some Bitcoin.

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Of course, I hope you guys are all doing your dollar-a-cost averaging right.

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You are, aren't you?

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Daily, weekly, monthly.

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I would not recommend monthly these days, but daily or weekly, certainly.

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If you really want to do it with strike, you can do hourly buys.

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Let's go ahead and talk about today's topic.

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I guess I kind of just gave the market update.

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Ethereum is at $16K, of course.

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Ethereum has actually performed a little better than Bitcoin over the last few weeks.

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It continues to do so, although as Bitcoin has come off this local high, so to speak, of $25K,

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Ethereum has followed suit and kind of followed along there.

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There we go. That's what we've got.

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Let's talk.

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I'm going to make this a shorter episode.

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Actually, I have no news this week.

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I really don't.

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There won't be a news segment.

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There hasn't been any that I thought was significant.

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I would point out, if you guys come across something that you would like me to talk about

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in terms of news, please feel free to send me a message.

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You can direct message me on Twitter, or you can send me an email, magentosh at jenwellthcrypto.com.

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No real news to speak of this week, though, but let's talk about our topic, self-custody.

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What do I mean?

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It's been a little bit.

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I actually glanced back through the episodes back in April.

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I talked about some hardware wallets, hardware wallets and software wallets.

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I essentially talked about self-custody for two episodes.

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It's been a few months ago, and given the goings-on of the last few months of the summer,

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late spring and really all through the summer, I would strongly encourage you to revisit

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that if you've not done so.

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The reality is that none of us know what's going to happen in the future.

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I think I've emphasized that enough that that's kind of become a standard thing around here.

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Of course, we talk about what Bitcoin might do from time to time, just like what I just

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did, and I can say, well, it looks like maybe it's going to kind of go down, and it may.

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It may not.

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I don't really know.

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I'm only looking at the data that I've got and my understanding of that.

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But we've also got things that we have no control over.

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Things like the Terra Luna debacle, the unpegging of the Terra stablecoin, and the subsequent

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downfall of Voyager, Celsius is a big mess.

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They're actually bankrupt at this point, and three arrows, huge amounts of money that's

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locked up, tied up, or gone, or all three.

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We can do our best to predict things, but the reality is many times we don't know what's

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going to happen.

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For example, what would happen if Coinbase were to have a serious problem?

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I'm not saying that that's true.

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Because they're a publicly traded company, we know certain things, like I think if I'm

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not mistaken, they lost a billion dollars in the last quarter, I mean, in terms of profit.

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They were negative.

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They did not lose a billion dollars.

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But they also have cash reserves.

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But what would happen if a major exchange like Gemini, maybe, or Kraken, or Coinbase

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were to go under?

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Could it cause the next cascade?

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Could you lose even more money?

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Now, I always equate crypto to the wild, wild west, and it still is.

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In my mind, that has not changed, and I don't think it will change for a number of years.

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The governments are moving in slowly, establishing rules, regulations about how things can be

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done.

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We still have these kind of things going on, and mind you, these things happen in TradFi

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traditional finance as well.

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I was actually listening to this podcast, one of the podcasts I listened to, it's called

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What Bitcoin Did.

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He's kind of a journalist, of a sense.

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He's somebody who was involved in Bitcoin.

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He's not a developer.

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He's not super technical, but he has all these interesting people on his podcast.

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He has this guy on there that actually was a very early person in Bitcoin.

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At one point, he was talking about how there was like eight people on the forum or whatever

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talking about the Bitcoin forum.

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I'd actually never heard of this guy before, but he's been fascinating to listen to.

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Junseth, I think is how he says his name, J-U-N-S-E-T-H.

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You might want to check out that episode.

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I will warn you, both the host and the, in this case, the person he was interviewing,

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they use language, adult language, so to speak, language I don't use, period, actually.

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Just be forewarned about that.

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It's been fascinating, and Junseth was talking about something that happened in the 90s.

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I was an adult in the 90s.

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I was actually married already, and so on and so forth.

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I don't remember this happening, but there was a huge scandal about this company, this

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TradFi company that was doing leveraged trades, essentially, and Russia apparently, you should

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go listen if you're interested, go listen to the podcast.

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Don't depend on me to relay all this, but anyways, Russia actually did something where

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they stopped allowing foreign people to own bonds.

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This was in the 90s, and apparently, that kind of set off this cascading liquidation

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event that almost completely decimated the markets, and we were very close to a financial

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crisis of very big proportions here in the United States.

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To say that this stuff doesn't happen, this is only crypto and whatever, it's not true.

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It does happen.

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Now some of it, the government is involved, and they somehow manipulate things, so to

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speak, so that we don't go belly up, so to speak.

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I don't know if that's a good way of putting it, but that's kind of what goes on, and it's

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actually what went on in this case.

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The government brokered some deal with all the major banks except, apparently, Bayer,

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the one that actually did go bankrupt in 2008, and the person being interviewed kind of made

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the point that I think he thought that that actually happened because of what went on

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in the 90s.

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Anyways, all the other major banks basically bailed this situation out.

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Please go listen to the podcast.

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They do a much better job than I do.

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If you want to expand your podcast listening, I do listen to that podcast on a fairly regular

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basis.

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It's very interesting people.

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I was talking about the methane stuff the other week, for example.

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The guy who was heading up that project was on, and it's just lots of interesting people

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anyways.

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So, I get nothing from that, of course, but there's lots of good podcasts out there.

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I'm not naive enough to think that you should only listen to mine, although I would hope

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that you listen to mine every week.

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All right, anyways, back to the story.

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Where were we at?

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Self-custody.

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Wow.

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Sorry.

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Point to all this.

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We don't know what might happen, and we don't.

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We don't know what the future may bring.

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The safest bet in any case is for you to self-custody.

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What does self-custody even mean?

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Of course, it means you control your crypto yourself.

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If your crypto is on Coinbase, Kraken, Gemini, whatever, it's not in your control.

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There's a very famous saying in Bitcoin, not your keys, not your coin.

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And they're talking about your cryptographic keys to control your Bitcoin.

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If that is the case, if you don't have those keys, if you log into the website, I go to

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Kraken, I go to Coinbase and I put in my email or my username, I put in my password, maybe

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I put in my second layer authentication, that's not your keys.

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What that means is that you're logging into their system and you can view what they say

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is your coin.

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Now, these companies have been around for a while, so on and so forth, but it's still

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not your coin.

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If something were to happen to Coinbase, you could lose your coins.

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That is the reality in any of these centralized exchanges.

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So it's something to be thought of.

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So how can you manage that?

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The best way to do it, as I talked about on those episodes back in April, is to use a

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hardware wallet.

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And I'm not in the business of saying, you should buy this over this, Ledger makes a

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very quality product.

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I would say this, if you buy a product, a hardware product, buy it directly from the

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company that makes it.

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Now, why?

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Well, Macintosh is probably being paranoid, but I would not go and buy it on Amazon because

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someone could buy it from Ledger, say, open it up, get the keys, the key words that you

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use to set up the thing, repackage it, turn around and sell it on eBay, or not, well,

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you could sell it on eBay, but I meant Amazon.

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And then I buy it, I go and I load it up and I got my fraction of a Bitcoin, or maybe I've

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got a Bitcoin, or maybe I got a hundred Bitcoin.

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And the other person can then take those words, reconstitute, buy a second Ledger, reconstitute

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the wallet, which is the way that you, if your wallet gets destroyed, it's the way that

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it's the safety mechanism, but they can then take your coin.

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So the way to guard from that is simply to buy straight from Ledger in that case.

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So always do that, even if it's a little bit of a nuisance.

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So keep that in mind, whether it's Ledger or one of these other products, we've got

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some new ones coming out.

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I know on the Fountain app, they've been advertising something, a new hardware product.

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I know Jack Strike, Jack Maulers, I'm almost sure it's Jack Maulers, it's working on a

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hardware product as well.

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I may actually even include a link to that.

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I'm going to look that up real quick, Zap, a Lightning Network wallet.

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That's not what I'm talking about.

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Maybe it wasn't Jack Maulers, maybe it was the other Jack, Jack Dorsey, yeah.

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I do get those two confused from time to time.

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Yes, Block, so Jack Dorsey's company Block is working on a crypto wallet and they're

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making it open source, which I think is fascinating, so I don't think they have anything yet, but

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it's something worth keeping an eye on.

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I will include a link to that in the show notes.

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All right, so get one of these later.

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Here we go.

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That'll work.

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I'll include that in the show notes.

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I do like that this one's open source.

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I think Jack Dorsey certainly has the right attitude for all this, but anyways, Ledger,

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there's other companies that make quality products as well.

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If you hold more than Bitcoin, of course, you need to consider that.

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I know like Ledger, these major manufacturers, I don't know honestly about Block's hardware

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here, but they support all kinds of crypto.

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Make sure that what you're holding that your wallet supports.

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It's that simple.

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Okay, so if you've got ETH, if you've got Polkadot, I don't know, Cardano, whatever,

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make sure that your wallet supports that.

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Not all wallets support all coins, all right?

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That's an important thing.

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And again, why do we do this?

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Well, you're being responsible.

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You don't have to worry about what happens with Coinbase.

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You can still have a Coinbase account.

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And let's say, well, in the simplest case, if it were me, and I were just buying Bitcoin,

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I would have a hardware wallet.

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I would buy my Bitcoin with strike and I would ship it to my hardware wallet, maybe every

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1% of a Bitcoin or so, something like that, right?

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Or whatever.

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There is a fee, there's a network charge when you ship, so you don't want to just like do

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it for, I buy $5 of Bitcoin and then I'm going to ship it to my hardware wallet.

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It's not practical, but let it build up a little bit and then ship it off.

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Whatever you feel comfortable with and maybe that's a couple of hundred bucks or maybe

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it's a hundred dollars or maybe it's a thousand dollars, I don't know.

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But then you ship it off to your hardware wallet, which, you know, you keep there in

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your desk or whatever.

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There is methods, as I explained to even what if you had a house fire, well, I lose my hardware

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wallet and I had a hundred thousand dollars of Bitcoin on it or other things, whatever.

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You can actually kind of reconstitute that from your seed phrase.

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That's what they're called.

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I don't know why I couldn't think of that earlier.

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Those 12 or whatever, I think it's 12 words, those words you would want to keep separate

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from your hardware wallet and probably in a place where even if you were to have a fire,

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say at the location or a robbery, where the hardware wallet is, you would have the seed

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phrase separate.

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I hope that makes sense.

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Whether that's in somebody else's safe that you trust or whatever, different people are

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going to have different solutions.

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But it is something you need to think about because you literally have a bank on that

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little hardware device, basically a USB card.

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So that is something you want to think about.

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All right.

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And that's it.

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I really don't have much else for this week.

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We're going to make it a shorter week.

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I'm at 20 minutes or so.

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All right.

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Here we go.

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Do believe we go back to August 15th, August 15th.

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All of these boosts, I believe are coming from fountain fountain continues to work on

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their beta product.

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I'm a member of their beta program.

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We rolled out, they rolled out, I should say, I don't have any involvement with the code,

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but they rolled out a couple of new versions in the last couple of weeks and they're getting

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there.

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It's not perfect, but they are getting there.

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So August 15th, all right.

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So I had somebody who watched an episode.

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I won't mention their name because they may not want me to, and that's okay.

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They were streaming while listening to your right to financial privacy, which I believe

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was actually our last episode.

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And I appreciate that.

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That was, that was a hard episode for me.

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I'll be honest.

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Sometimes, sometimes these episodes come really easy and sometimes they're a lot of work,

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to be honest.

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That was actually the last episode, of course.

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And this was definitely one of the harder ones.

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I wanted it to be, I wanted it to be impactful.

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It certainly was for this person, apparently.

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They streamed it all the way through.

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So anyways, I hope you enjoyed that episode.

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So we had a boost earlier this week from Ginny Jam.

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She was listening to the right to privacy episode last week, and she boosted 20 sats

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and she sent a message.

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She said, discovered your podcast on one of those other apps and now use Fountain because

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of you.

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Thank you.

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So that's cool.

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Glad she's trying Fountain out.

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I hope she's enjoying it.

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I would say, I wonder what app she was using.

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It doesn't matter.

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The Generation Wealth Cryptocurrency podcast is available everywhere, except maybe Spotify.

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I'm not sure I've opted out of that.

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I probably will at some point because what Spotify is doing, and that's a whole nother

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discussion, it's just not, not in my opinion, what's best for podcasting.

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Even if you're using old apps like Pocket Cast or Apple, like Apple podcasts, then it's

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all cool.

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It still works.

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So you can still listen to it.

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You can't stream sats, of course, or boost, but I think all these apps will come along.

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I don't think they're going to have a choice.

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It's early days of this.

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It's somewhat rocky from time to time, but this is clearly the future in my opinion.

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That remains to be seen.

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But I do believe it will at least be a major part of the podcasting landscape.

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Podcast creators, content creators, or whatever you want to call them, they need this type

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thing.

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They need a direct connection to their audience and a way for their audience to be able to

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support them, just like people can do through streaming and boosting.

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All right.

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Let me hear from you, Jenny, thank you.

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Generation Wealth Cryptocurrency Supports Podcasting 2.0.

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It's a value for value podcast with no sponsors, no advertising, of course.

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You can support the podcast in three different ways with time, talent, and treasure.

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Time and talent is, you know, I need things like transcripts.

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I'm still working on that.

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I just can't seem to get around to it.

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That kind of thing, treasure, is Sats, right?

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Sats or dollars, actually, you can send money to PayPal if you wish.

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McIntosh at GenWealthCrypto.com is that address.

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If you find the content valuable, you can support the podcast by streaming Sats from

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Podcasting 2.0 app.

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You can get a podcasting 2.0 app for the optimal listening experience at NewPodcastApps.com.

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Of course, these days, I'm driving Fountain.

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I really want to play with live tags, so if an app supports the live tag, what that means

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is when a podcast goes live, if they're set up for that, then you can actually listen

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to it live.

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I do that with the Podcasting 2.0 app podcast, I should say.

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They support the live app.

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When they go live, it shows up if the app supports that.

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I understand that's coming fairly soon in Fountain.

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I also heard some other super interesting news this week, at least for me.

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Before Podcasting 2.0 came along, I always used to listen using Pocket Cast.

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It's a very popular app.

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You've probably heard of it if you've listened to podcasts much.

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It's been around for a long time.

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They've never supported Podcasting 2.0.

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Well, apparently, that's about to change.

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I still have my old Pocket Cast app.

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I'm ready to dust it off as soon as they start supporting it.

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We'll just have to see.

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They have a great interface, in my opinion.

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Very well-polished.

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Honestly, some of the Podcasting 2.0 apps could learn a few things from them, but we'll

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see how that works out.

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Hey, thanks for being here.

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If you like the content, I would love it if you'd tell your friends about Generational

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Wealth Cryptocurrency Podcast.

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I hope this has been helpful.

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I would love to hear from you, but I do mean that.

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I'm on Twitter at MacintoshFintech, and you can reach me by email at macintosh@genwealthcrypto.com.

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Of course, our website's at genwealthcrypto.com.

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Hey, now, go out and make it a great week.

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I will talk to y'all next Monday.

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