Part 2/13:
Cole begins by stressing a core principle: always maintain self-custody of your coins. History is littered with breaches involving third-party custodians, like exchanges, which have led to massive losses for users. Trusting third parties introduces vulnerabilities—exchanges can be hacked, go bankrupt, or be compromised—whereas individual custody, if done correctly, can be far more secure.
He explains that every Bitcoin wallet must connect to a Bitcoin node to verify transactions. By default, connecting to a third-party node leaks your Bitcoin addresses and transaction data. The secure alternative? Running your own node. This approach ensures that you leak information only to yourself, drastically increasing privacy and control.