Many people within the crypto space are very aware that you must hold your own keys for true ownership and access. This is exactly what stock exchanges and payment processors that have begun offering crypto trading are preventing. So then, let’s go through some examples.
Given the recent announcement by Paypal saying they would begin offering cryptocurrency trading through their platform, there has been a lot of buzz about it, but here’s the catch: they get to hold your keys and you can’t withdraw or spend your crypto.
According to this article, they plan to also let you pay for things through their network, but I doubt you’ll ever be able to spend freely or withdraw your crypto: https://www.cnbc.com/2020/10/21/paypal-gets-into-crypto-with-new-features-for-trading-and-shopping.html.
You can find all this clearly on Paypal’s FAQ section: https://www.paypal.com/us/smarthelp/article/cryptocurrency-on-paypal-faq-faq4398. One thing we all know very well that when any entity gains power or control over something like your funds, what reason would they have to let go of it? Yes they may let you spend on what they allow, but you aren’t financially free or independent which are core values in many cryptocurrencies.
You will find the same problems on WealthSimple in Canada for stock trading that if you decide to invest in crypto, you cannot withdraw or spend it: https://www.wealthsimple.com/en-ca/product/crypto/.
Again, you’ll find the same issue on Robinhood in the United States, and I will bet that many other fiat services, payment processors, and stock exchanges who offer crypto trading will have the same restrictions: https://robinhood.com/us/en/support/articles/cryptocurrency-transfers-and-deposits/.
You can find my list of recommendations for exchanges, wallets, and more here: https://lbry.tv/@ScottCBusiness:4/blockchain-resources:e
What do you think though? Is there really a good reason for them to do this? Will they open it up or are they trying to centralize the use of cryptocurrency? Let me know in the comments below and don’t forget to like, share, and subscribe as well!
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