10 practices crypto can borrow from TradFi to better protect customers

cointelegraph.com:

Crypto pioneers and decentralized finance companies often talk about their commitment to opening up financial opportunities to underserved populations, but that’s only half the battle in achieving success for this fledgling industry. Global consumers must be confident that the funds they invest with crypto companies are safe, secure and accessible for withdrawal when desired.

While traditional finance companies may not offer all the new and unique opportunities and potential of DeFi, what they do enjoy is a long history and established methods for protecting consumers’ investments — and maintaining their trust. Below, 10 members of Cointelegraph Innovation Circle discuss some helpful things the crypto industry can learn from the TradFi industry, including practices DeFi companies should consider adopting and adapting for their own customer base.

DeFi companies don’t have the FDIC insurance that TradFi companies enjoy, but that shouldn’t stop us from creating our own. Functioning insurance systems that use smart contracts to automatically issue payments to affected parties is the best way to ensure safety and security. TradFi enjoys a bureaucratic system to make this happen; we can do the same, and far more quickly, using decentralized systems. – Budd White, Tacen

Before investing in cryptocurrency, it is very important that the consumer 1) is okay with handling their own money in a decentralized world, as opposed to the centralized world of financial institutions; 2) has researched reputable wallets and exchanges before sending crypto or money to them; and most of all 3) knows this truth: “not your keys, not your coin.” It’s essential to educate consumers about these facts in the decentralized world of finance. – Chris