As the name implies, self-signed SSL certificate essentially stands as an identity certificate signed by its generator locally at the server. These locally generated certificates are used by web sites or server owners either when not in plan on having certificate signed by a CA (Certificate Authority), or the certificate is for testing of new SSL implementation. They don’t hold much credibility and lack trustworthiness as they generate error in the client browser demonstrating unknown signing certificate authority.
Unlike CA issued certificates, self-signed certificates are free of charge which tempt many users to generate and use them. Self-signed certificate, not signed by third party trusted CA authority, this can be rather a security hole as it can’t be revoked if compromised and as a result penetration for spoofing can be possible. Self-signed SSL Certificates drive away potential customers out of fear that the website does not secure their credentials. Both brand reputation and customer trust are damaged. They can’t be used in credit card data and bank transactions where security and privacy is necessary.
We highly recommend purchasing and using SSL certificates signed by trustworthy CA (Certificate Authority). SSL encrypts all the data within the session and the CA is more like assurance that the information is securely transferred over internet. Trying to save money on SSL and using a self signed one can result in bitter consequences in the course of time.