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By holding your Bitcoin directly, you avoid counterparty risks such as theft or mismanagement by custodial institutions. Moreover, there's an absence of regulatory risk; no law can suddenly impose heavy taxes or confiscate your assets without due process — at least, that's the ideal scenario.
Educational and Decentralization Benefits
Managing your own wallet breeds a deeper understanding of blockchain technology, promoting financial literacy. It also sustains the decentralized nature of Bitcoin, preventing central points of control that can be vulnerable or susceptible to censorship.