What are the best practices for institutional custody of cryptocurrencies?
Diego MaquillDec 25, 2021 · 3 years ago1 answers
What are some recommended strategies and procedures for securely storing cryptocurrencies in an institutional setting?
1 answers
- Dec 25, 2021 · 3 years agoAt BYDFi, we understand the importance of institutional custody of cryptocurrencies. Our recommended best practices include a combination of cold and hot wallets, similar to what other experts have mentioned. Cold wallets, such as hardware wallets or offline storage, provide an added layer of security by keeping the private keys offline and away from potential hackers. Hot wallets, on the other hand, offer quick access for day-to-day transactions. Additionally, implementing multi-signature wallets and conducting regular security audits are essential to ensure the integrity of the storage system. By following these best practices, institutions can mitigate the risk of theft or loss of cryptocurrencies and maintain the trust of their clients.
Related Tags
Hot Questions
- 99
How can I buy Bitcoin with a credit card?
- 98
What is the future of blockchain technology?
- 66
What are the advantages of using cryptocurrency for online transactions?
- 55
How can I protect my digital assets from hackers?
- 42
Are there any special tax rules for crypto investors?
- 31
What are the best practices for reporting cryptocurrency on my taxes?
- 25
How can I minimize my tax liability when dealing with cryptocurrencies?
- 22
What are the best digital currencies to invest in right now?