Creating an account on a website is a lot easier than installing and learning to use software, and a more familiar way of doing it for most people. The only disadvantage is that you have to trust the site, but that's fine for pocket change amounts for micropayments and misc expenses. It's an easy way to get started and if you get larger amounts then you can upgrade to the actual bitcoin software.
Discussion
Not your keys not your coins 😏 And it doesn’t matter it’s a pocket change or your whole stack! We are all different and majority of people will be just using “easier” ways before they will be rekt by the third parties! Onboarding someone in the right way that is a key !
No that's not me... that's Satoshi Nakamoto in 2010:
I’ve posted this same message 100 times!
Can’t believe #satoshi Nakamoto and I both had the same thought!
Ok here goes:
1.think of your lightning wallet as your “bill fold” you carry only a small amount of cash(cash for the weekend, or night out), DON’T KEEP MUCH HERE, like $100 -$200 just like a bill fold, rug pull won’t affect much.
2. Think of your “software” self-custody wallet as your checking account. This could be something like “brave wallet” or coinbase wallet. But must be self custody. Keep a month or so salary here.
3.think of your hardware/cold storage as your savings account. This is your NEST EGG.
If you think that way, fees/convenience dominate the lightning wallet choice. And just like loosing your billfold (it sucks) but won’t affect your destiny.
Features/convenience dominate the “software” wallet. This wallet is self custody and keeps a month or so of working cash. Typically hooked up to an exchange for moving coin in and out, and sending to your LN wallet.
security dominates the cold storage wallet decision (e.g. multi-sig air-gap multi-vender etc…
bringing receipts 😂
It’s open source software for a reason, Satoshi was wrong about a lot of things. Also, there is a difference between an experienced user making the decision to use a custodial wallet for convenience despite the risks and onboarding a new user to custodial when they obviously don’t understand the risks.
Can’t wait the day when you will rug everyone who is holding a sats at your wallet so I will be able to come back to this note that can’t be deleted ✌️
This is not the gotcha you think it is.
You have to meet people where they are and WoS can be an effective way to demonstrate or introduce someone to bitcoin if you’re short on time.
This fixation on self custody for all amounts of sats in all circumstances regardless of skill level and knowledge is cringe.
smart man ✌️
a bad idea is bad no matter who had it. custodial solutions are a bad tradeoff in general, particularly so when the custodian is terrible at communicating with users.
Custodial is a great way to onboard new people easily. People these days still forget their passwords and a private key or backing up channels is a lot more technical process.
Getting more people on board even with custodial accounts has benefits to the network, price, and use cases.
With that being said… Not your key, not your coins.
Make your non custodial 😁