While the collapse of FTX still haunts crypto users and investors, Ray Youssef provides them with sound advice to protect their holdings. Paxful's CEO surprises with his suggestions that go against common practice.

Paxful CEO advises users to withdraw their cryptos from exchanges
Ray Youssef

Self-guard is the thing to do, says Ray Youssef

Many crypto users still have questions about the safety of their investments after the FTX debacle. Exchanges try somehow to regain their trust, for example releasing their proof of reserve . Moreover, many believe that the latter has been overestimated in recent weeks. For the safety of their assets, investors should apply self-custody, according to Paxful CEO Ray Youssef. 

He would like to see more bitcoin (BTC) holders take full control of their funds in this way. In a message to all Paxful users shared on Twitter , he recommends that they withdraw their holdings from crypto exchanges, “even from Paxel ,” in his words. He explains that investors should only hold the assets they trade on exchanges. Ray Youssef intends to regularly send these warning emails to its users.

Reserve evidence is not enough 

In recent weeks, many crypto exchanges have released their proof of reserve. This is an independent, third-party audit that serves to prove that an exchange holds assets in reserve. This reserve must at least equal the customers' covered balances. For many, it is an unequivocal way to prove the reliability, solvency and credibility of an exchange. For Ray Youssef, publishing proof of reserves is not enough. It is the responsibility of each exchange to protect its investors by recommending self-custody among other things. 

Self-care is a matter of control. This practice refers to the fact that users can take full control of their digital assets (to send, receive and store cryptos). This, without depending on a third party. Ray Youssef's advice is unlikely to fall on deaf ears at a time when the full consequences of FTX's downfall have yet to be determined.

With these crypto exchanges halting withdrawals out of the blue, Ray Youssef 's self-custody advice comes in handy. Keeping total control over its assets would effectively protect against possible implosions. 

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