02/02/2023
💰 Storing crypto assets safely in 2023: what you need to know.
With the growing popularity of cryptocurrencies, it’s important to educate yourself on how best to secure your coins. A video by Cointelegraph where James Check, a lead on-chain analyst at Glassnode elaborates on possible ways for various approaches is a great help.
A lot of people have lost a lot of money because they didn't take the time to make sure their coins were being held in a safe place. If you want to protect yourself, then you need to take steps to ensure that your funds are not at risk. Here are a few important conclusions based on the mentioned video.
James Check pointed out that although collaborative custody seems to be easier to use, it is vulnerable to hackers or other security issues. Your crypto is your most valuable asset. With this in mind, the analyst believes that there is no “solution” to custody. Instead, he says there are only compromises to be made. And keeping a wallet’s 12-word seed phrase safe is a responsibility to take. So as a user, you should be able to control your own funds at all times.
The more you have, the more important it is that you learn how to best protect it. It’s not just a question of safety, but also one of peace of mind — you can never have too much control over your own assets. For example, the time it would take for someone with $10,000 in their wallet to learn how to properly store their private keys is not as significant as the time it would take someone with $1 million. Larger holdings require more security and thus more complex solutions when it comes to storage.
If you’re planning on storing large amounts of cryptocurrency in cold storage (offline), then consider investing in a hardware wallet. These wallets make it much harder for hackers to gain access to your funds because they store private keys on a physical device that never connects directly to the internet and therefore cannot be hacked remotely.
James Check, lead on-chain analyst at Glassnode, breaks down the best crypto custody solutions for 2023 and explains why taking responsibility for private ke...