Similar to managing any other funds management, the use of Hot and Cold wallet ensures further safety. Doing this for cryptocurrency is critical because of its intangible digital nature, which opens it up to hacks that can cause significant losses. In the same manner that you open up multiple accounts, spreading your assets is ideal for storing them. Revisit the distribution of crypto assets regularly as your assets grow in value and consider including governance best practices into your compliance and risk management program. It is ideal to limit the size of holdings in any single wallet and work with a custodian to set up for secure storage of crypto assets. If your wallet is hacked, spreading assets across multiple wallets is a relatively safer way to reduce the chance of losing it all. Increasingly, a large number of vendors now implement appropriate security firewalls, allocate substantial resources, and employ the technical capabilities needed to mitigate the risks involved. It is also critical that such a private key not be in the custody of a company that has not installed appropriate firewalls between custody, trading, and liquidity services or a company that commingles corporate assets with client funds. The alphanumeric private key used to access a crypto wallet should never be in the custody of a single person or should access one wallet with all crypto assets in it. Speak with a specialized insurance broker that offers coverage of digital assets.Ensure appropriate governance at the board level and have redundant sources to access your digital assets.Make yourself aware of the current liability/data security regulations that apply to you and your vendors.Ensure that security solution vendors provide indemnity.Routinely conduct thorough due diligence on cybersecurity.If your digital asset portfolio is substantial, invest in hiring specialty vendors to help protect your digital assets.Implement other recommended security policies to reduce risk.Use both the cold wallets and the hot wallets to store private keys.Spread your crypto assets across more than one digital wallet.Do not use or retain self-custody keys or have non-custodial wallets.Whatever the reasons for any individual or an organization to invest in digital assets, one aspect remains universally valid: protecting the private keys is critical.īefore you begin to google things like, 'is my ether wallet safe?' or 'how to use blockchain wallet?', here are some general principles for keeping your crypto investments safe: Whether you are an investor or a crypto exchange development company, your interest in keeping crypto-assets safe is unison.
With the growing interest of the institutional investors in crypto surging, corporate treasurers considering bitcoin investments, and a new crop of digital assets such as NFTs gaining in value, the need for protecting digital assets has never been greater. This naturally brings up the questions like, is my ether wallet safe? Or, in the case of bitcoin, is my blockchain wallet safe? As you go from being a crypto enthusiast to a crypto millionaire, it is critical to understand that going from a prince to a pauper merely takes seconds.