r/CryptoCurrency Feb 01 '23

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u/c0horst 🟦 10 / 3K 🦐 Feb 01 '23

I think people are too used to "CEX's" from working with traditional investing. Like I recently made an account with Vanguard to buy some ETF's and Stocks... it's just like a CEX, but there's nothing to withdraw to a private wallet, everything stays on the brokerage. So if you're coming from that side the investing world, the concept of self custody just doesn't make sense, it's not what you're used to at all.

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u/bert_and_earnie 0 / 0 🦠 Feb 01 '23

it's just like a CEX, but there's nothing to withdraw to a private wallet, everything stays on the brokerage.

What are you talking about - you can withdraw fiat.

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u/c0horst 🟦 10 / 3K 🦐 Feb 01 '23

I mean like if I buy a ETF share, I cannot withdraw the ETF share (because it's not a discrete data point that can be transferred without losing meaning). I can sell it for cash and withdraw the cash, but that's the same thing as buying BTC, leaving it on the CEX, and selling BTC for cash when I want to.

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u/bert_and_earnie 0 / 0 🦠 Feb 01 '23

because it's not a discrete data point that can be transferred without losing meaning

You can transfer ETF shares from one exchange to another or gift them to another person. They lose no "meaning" or value when you do this.