What are the best practices for institutional custody of cryptocurrencies?

1 answers

• Patryk PersakSep 30, 2024 · a year ago
  At 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.
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