What are the potential risks of self-custodying crypto and how to mitigate them?

3 answers

• Jan 13, 2022 · 3 years ago
  Self-custodying cryptocurrencies can expose users to various risks, such as the risk of losing access to their funds if they forget their private keys or if their hardware wallets get damaged or stolen. To mitigate these risks, it is important to securely store and backup private keys in multiple locations, use hardware wallets from reputable manufacturers, and regularly update wallet software and firmware to protect against potential vulnerabilities.
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• Jan 13, 2022 · 3 years ago
  When self-custodying crypto, there is always the risk of falling victim to phishing attacks or malware. To minimize these risks, it is crucial to be cautious of suspicious links and emails, use strong and unique passwords, enable two-factor authentication, and regularly update antivirus software. Additionally, it is recommended to only download wallets and software from official sources and to double-check the website URLs to ensure they are legitimate.
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• Jan 13, 2022 · 3 years ago
  At BYDFi, we understand the importance of self-custodying crypto securely. One way to mitigate the risks is by diversifying your storage solutions. Consider using a combination of hardware wallets, paper wallets, and secure offline storage options. It's also essential to stay informed about the latest security practices and to follow best practices for securing your crypto assets. Remember, self-custodying crypto gives you full control over your funds, but it also comes with the responsibility of safeguarding them.
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