Ensuring the security of crypto assets is crucial for investors. Crypto custody provides storage services, safeguarding digital assets from theft and loss.
What is Crypto Custody?
Crypto custody refers to services that securely store cryptocurrencies, similar to how banks store gold. They provide an extra layer of protection for digital assets.
Role and Types of Crypto Custody
Crypto custody ensures asset security with layered protection systems, including technologies like two-factor authentication and multisignatures. There are two main types: self-custody, granting owners full control over keys, and third-party custodians for large investors, offering professional storage and management.
Differences Between Custody and Storage
While often confused, custody and storage serve different functions. Storage manages private keys, while custody manages and protects the assets themselves. Custody is better suited for investors seeking additional security.
Understanding crypto custody helps in selecting the appropriate storage type for your assets. Consider the provider's license and reputation when making a choice.
