What is crypto custody?
Today we gonna know, what is crypto custody?
For the uneducated, these services open the way for digital assets to be stored securely at large volumes. Some lawyers believe that this could be one of the key factors in initiating the flow of new investments from institutional investors.
Many solutions out there use hot and cold storage. "Hot storage" means coins and tokens stored on an Internet connection. While this means that goods are easily accessible, this also means that there is a high risk that money can be stolen through online attacks. "Cold storage" includes keeping digital currencies away from the Internet connection. In theory, cold storage methods are much safer because there is a lower risk of goods being stolen from cyber attacks and hijackings. However, as we have seen with cases like QuadrigaCX, even this method does not provide a metal guarantee that funds will be kept safe.
Comments