What are the best practices for custody of crypto assets?

3 answers

• Dec 17, 2021 · 3 years ago
  One of the best practices for custody of crypto assets is to use a hardware wallet. Hardware wallets are physical devices that store your private keys offline, making them less vulnerable to hacking. They provide an extra layer of security by keeping your private keys separate from your computer or smartphone, which are more susceptible to malware and phishing attacks. Additionally, hardware wallets often require a physical confirmation, such as pressing a button, to authorize transactions, further protecting your assets. Another important practice is to use strong and unique passwords for your crypto wallets. Avoid using common passwords or reusing passwords across different platforms. Instead, use a combination of uppercase and lowercase letters, numbers, and special characters. Consider using a password manager to securely store and generate complex passwords. It is also advisable to enable two-factor authentication (2FA) for your crypto accounts. 2FA adds an extra layer of security by requiring a second form of verification, such as a code generated by a mobile app or sent via SMS, in addition to your password. This helps prevent unauthorized access to your accounts even if your password is compromised. Lastly, regularly updating your software and firmware is crucial for maintaining the security of your crypto assets. Developers often release updates to fix vulnerabilities and improve security. Make sure to keep your wallets, operating systems, and other relevant software up to date to benefit from the latest security enhancements.
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• Dec 17, 2021 · 3 years ago
  When it comes to the custody of crypto assets, it's important to remember the saying 'not your keys, not your coins.' This means that if you don't have control over the private keys of your crypto assets, you don't truly own them. Therefore, one of the best practices is to store your assets in a self-custody wallet, where you have full control over your private keys. Another practice is to diversify your storage solutions. Instead of relying solely on one wallet or exchange, consider using multiple wallets and exchanges to spread out the risk. This way, if one wallet or exchange gets compromised, your entire crypto portfolio won't be at risk. Additionally, it's important to regularly back up your wallet and store the backup in a secure location. This ensures that even if your device gets lost, stolen, or damaged, you can still recover your crypto assets. Lastly, educate yourself about common security threats and scams in the crypto space. Stay updated on the latest security practices and be cautious of phishing attempts, fake websites, and suspicious emails. Remember to always verify the authenticity of any platform or service before providing your private keys or making transactions.
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• Dec 17, 2021 · 3 years ago
  At BYDFi, we prioritize the security and custody of crypto assets. One of the best practices we recommend is using our secure and audited custody services. Our platform employs industry-leading security measures, including multi-signature wallets, cold storage, and regular security audits. In addition to using our custody services, it's important to follow other best practices for securing your crypto assets. This includes using hardware wallets, strong passwords, and enabling two-factor authentication. Diversifying your storage solutions and staying informed about security threats are also crucial. Remember, the security of your crypto assets is of utmost importance. Take the necessary precautions to protect your investments and ensure peace of mind.
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