Crypto custody encompasses mechanisms for secure storage and management of private keys that grant access to digital assets.
What Is Crypto Custody?
Crypto custody refers to the secure storage and management of private keys that provide access to digital assets. Control over these keys equals control over the assets.
Importance of Crypto Custody
Crypto custody is crucial for preventing loss of funds due to lost keys or hacks. Proper custody solutions adhere to regulatory requirements and offer protection through insurance.
Types of Crypto Custody Solutions
There are several types of crypto custody solutions, including:
1. **Self-Custody** - Users hold their own keys.
2. **Third-Party Custody** - A custodian manages keys on behalf of clients.
3. **Institutional Custody** - Designed for businesses with advanced security and compliance needs.
Crypto custody plays a critical role in safeguarding digital assets amid increasing threats and the necessity for investment protection.
