CoinPayments Alternative: Are You Making These 7 Common Custody Mistakes? (And How Larecoin's Self-Custody Fixes Them)

Custody mistakes cost merchants millions every year.

CoinPayments and similar custodial processors hold your crypto. They control your funds. They decide when you can access them.

And when things go wrong? You're just another unsecured creditor watching your revenue disappear.

Let's break down the 7 custody mistakes merchants make with CoinPayments: and how Larecoin's self-custody model eliminates every single one.

Mistake #1: Trusting Custodial Platforms That Can Deplatform You Overnight

CoinPayments controls your merchant account. They can shut you down based on:

• Business model concerns

• Transaction volume spikes

• Algorithmic risk assessments

• Zero explanation required

One day you're processing payments. The next day your account is frozen with no warning.

Larecoin's Fix: Self-custody means nobody controls your wallet except you. Your private keys. Your funds. Your business continuity. No platform can revoke access to money that exists on-chain under your control.

Mistake #2: Putting Your Revenue on a Company's Balance Sheet

Platform insolvency is the nightmare scenario. FTX. Celsius. BlockFi. Thousands of merchants became unsecured creditors overnight.

CoinPayments holds your crypto on their infrastructure. If they face bankruptcy, your funds become part of their estate. You wait in line with everyone else hoping to recover pennies on the dollar.

Larecoin's Fix: Direct-to-wallet settlement. Every payment lands in your self-custodied wallet immediately. Larecoin never holds your funds. We can't go bankrupt with your money because we never touch it. Your crypto stays on the blockchain where it belongs: under your control.

Mistake #3: Accepting Withdrawal Limits and Settlement Delays

Custodial processors love holding your money. Settlement delays range from hours to days. Withdrawal limits cap how much you can access at once.

CoinPayments processes withdrawals in batches. They set limits. They decide timing. Your revenue sits in their wallets earning them interest while you wait.

Larecoin's Fix: Instant settlement directly to your wallet. Zero withdrawal limits. Zero processing delays. The moment a customer pays, you receive crypto in your self-custodied wallet. No middleman. No waiting. No limits on accessing your own money.

Mistake #4: Creating a Tax and Compliance Nightmare

Custodial platforms generate compliance complexity:

• Unclear cost basis tracking

• Ambiguous holding periods

• Transaction history locked in proprietary systems

• Export limitations for accounting software

CoinPayments gives you transaction reports. But reconciling those with actual wallet movements for tax purposes? Good luck.

Larecoin's Fix: NFT receipts for every transaction. On-chain audit trails that accountants can verify independently. Every payment generates an immutable NFT receipt containing all transaction metadata. Tax reporting becomes transparent. Compliance gets simplified. Your accountant will thank you.

Check out our approach to merchant solutions that prioritize transparency.

Mistake #5: Ignoring Key Management Complexity at Scale

Traditional self-custody introduces legitimate challenges. Managing private keys across multiple locations. Balancing security with usability. Operational overhead for teams.

But here's the thing: custodial platforms aren't the answer. Surrendering control to avoid key management is like storing cash under your competitor's mattress because safes seem complicated.

Larecoin's Fix: Master/sub-wallet architecture. Maintain self-custody while simplifying enterprise key management. Generate sub-wallets for different departments or locations. All connected to your master wallet. You control the hierarchy. You maintain custody. Complexity handled without sacrificing sovereignty.

Mistake #6: Turning Your Business Into a Centralized Security Honeypot

Single point of failure. CoinPayments holds crypto for thousands of merchants in centralized infrastructure. One successful breach compromises everyone.

Custodial platforms are high-value targets. Hackers know exactly where to attack. When they succeed, thousands of merchant accounts get drained simultaneously.

Larecoin's Fix: Distributed security model. Self-custody spreads risk across individual wallets. No centralized honeypot. Attacking the Larecoin network means attacking thousands of independently secured wallets. No single breach compromises the entire merchant ecosystem.

Your security becomes your responsibility: and nobody else's vulnerability.

Mistake #7: Paying Premium Fees for Custody Risk

CoinPayments charges transaction fees for the privilege of holding your crypto. You pay them to create custody risk. You pay them to control your funds. You pay them to impose withdrawal limits.

Meanwhile, you still handle chargebacks, refunds, and customer service yourself. What exactly are you paying for?

Larecoin's Fix: Gas-only transfers. No transaction fees. No custody fees. No withdrawal fees. You pay blockchain gas costs: that's it. The rest stays in your wallet where it belongs.

Self-custody eliminates the fee model that exists solely because processors hold your money. Why pay someone to create problems you wouldn't have with direct wallet settlement?

Learn more about our fee savings approach.

The Larecoin Difference: Self-Custody Without Compromise

Stop making custody mistakes. Start controlling your crypto.

Larecoin delivers:

• Self-custodied wallets you control completely

• Instant settlement with zero holding periods

• NFT receipts for transparent compliance

• LUSD stablecoin option for price stability

• Master/sub-wallet architecture for enterprise scale

• Gas-only fee structure without custody premiums

• Direct blockchain settlement without intermediaries

Merchant freedom means custody freedom. Independence from platforms that can deplatform you. Independence from companies that can go bankrupt with your funds. Independence from withdrawal limits and settlement delays.

NOWPayments Makes the Same Mistakes

NOWPayments operates the same custodial model as CoinPayments. Different branding. Same fundamental custody risk.

They hold your crypto. They control withdrawals. They set the terms. Your revenue sits on their balance sheet until they decide to release it.

Self-custody isn't optional anymore. It's the only rational choice for merchants who understand custody risk.

Ready to Fix Your Custody Mistakes?

CoinPayments made sense in 2015 when self-custody solutions didn't exist for merchants. But it's 2026. Technology evolved. Options expanded.

Larecoin gives you everything custodial processors promised: without surrendering control of your funds.

Visit Larecoin and set up self-custodied payments today. Your wallet. Your keys. Your business.

Stop trusting platforms with your revenue. Start controlling your crypto from the first transaction.

The choice is simple: custody mistakes with CoinPayments or self-custody freedom with Larecoin. Which do you choose?