{"id":596810,"date":"2023-11-06T16:47:00","date_gmt":"2023-11-06T13:47:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/telegram-wallet-avoided-self-custody-to-ease-crypto-onboarding-coo-says\/"},"modified":"2023-11-06T16:47:00","modified_gmt":"2023-11-06T13:47:00","slug":"telegram-wallet-avoided-self-custody-to-ease-crypto-onboarding-coo-says","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/telegram-wallet-avoided-self-custody-to-ease-crypto-onboarding-coo-says\/","title":{"rendered":"# Telegram Wallet avoided self-custody to ease crypto onboarding, COO says"},"content":{"rendered":"

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As Telegram prepares to roll out Telegram Wallet as a native setting on the messenger in November, it\u2019s important to understand why Wallet opted for custody over self-custody. <\/p>\n

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Telegram Wallet, a major Telegram bot allowing users to buy and sell cryptocurrencies like Bitcoin (BTC), has chosen custody over self-custody to chase easier onboarding goals, according to a senior executive.<\/p>\n

In July 2023, crypto-friendly Telegram messenger announced the integration of the custodial crypto wallet to allow users to access it directly from the messenger\u2019s settings. <\/p>\n

Though Telegram has enabled existing Wallet users to see the wallet bot directly in the messenger, those who have never used the bot are still not seeing it in their settings.<\/p>\n

According to Telegram Wallet chief operating officer Halil Mirakhmed, the full rollout is expected to begin sometime in November, starting with \u201cseveral African and Latin American countries.\u201d With the rollout, Telegram users in select countries can access the Wallet and start buying, selling and transacting cryptocurrencies.<\/p>\n

\u201cThe rollout will continue throughout MENA, South East Asia, Central Asia and Eastern Europe,\u201d Mirakhmed told Cointelegraph, adding:<\/p>\n

\u201cOnce the global rollout has concluded, Wallet will become available in the Telegram settings menu throughout the world, with the exception of the jurisdictions in which Wallet does not operate.\u201d<\/p><\/blockquote>\n

As noted earlier, the Telegram Wallet bot operates a custodial wallet, distinguishing it from\u00a0major self-custodial wallets\u00a0such as MetaMask. This means that users entrust their coins to a third party and do not own their assets directly. For example, to withdraw Bitcoin from the Telegram Wallet, users must have enough BTC to cover Telegram Wallet\u2019s fees, which may sometimes be more expensive than the native fees on the Bitcoin network.<\/p>\n

According to Mirakhmed, the Wallet bot platform opted for a custodial solution instead of a self-custodial one for several reasons, including easy onboarding of new users.<\/p>\n

\u201cIf you want to introduce as many people as possible to crypto, self-custody becomes exceedingly difficult,\u201d Mirakhmed said.<\/p>\n

\u201cImagine if you\u2019ve never used crypto before and your go-to solution for now, let\u2019s say, is a noncustodial wallet on Ether,\u201d he said, stressing that before using a self-custodial wallet, one has to sort out how to store the seed phrase and deal with the wallet, whether it\u2019s a Chrome extension or an app<\/a>.<\/p>\n

Related: <\/em><\/strong>Fake Ledger Live app sneaks into Microsoft\u2019s app store, $588K stolen<\/em><\/strong><\/p>\n

One should also be ready to pay gas fees to transact Ether (ETH), which adds too much complexity to a non-crypto native user, the Telegram Wallet chief operating officer believes.<\/p>\n

In contrast to self-custodial wallets, Telegram Wallet aims to help users start using crypto the exact moment they click on Wallet on their Telegram settings, Mirakhmed said.<\/p>\n

\u201cFirst of all, the onboarding is very simple. Secondly, you already have a few chains on there. And thirdly, when you want to send someone any assets, you just use a telephone contact. So I can send money to you on Telegram rather than having to know what your address is. It all happens within Telegram.\u201d<\/p><\/blockquote>\n

user\u2019sWhen it comes to choosing between custodial and self-custodial wallets, the short of it is that\u00a0custodial wallets are more convenient but significantly less safe, while self-custodial, or noncustodial, wallets are less convenient but more secure. The biggest issue when using a self-custodial solution is that it\u2019s the user\u2019s sole responsibility to keep the private key, or the seed phrase, safe.<\/p>\n

Magazine: <\/em><\/strong>How to protect your crypto in a volatile market \u2014 Bitcoin OGs and experts weigh in<\/em><\/strong><\/p>\n