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Keeping your cryptos: the ideal solution?


 Keeping your cryptos: the ideal solution? For many, recent events have highlighted the need to own their private keys so as not to depend on any centralized entity. So what is the best option to keep your cryptos safe?

Guard against the failures of centralized players

The bankruptcy of one of the largest exchanges on the planet has many consequences for the crypto ecosystem. Thus, many players are calling on investors to self-custody of their cryptos.

Keeping your cryptos: the ideal solution?

Recently, it was even CZ the boss of Binance , who described this process as a basic human right . The latter taking the opportunity to advertise the Trust Wallet solution, one of the leaders in the cold wallet sector with the French Ledger.

Vitalik Buterin, co-founder of Ethereum , spoke about his calls for the possession of his private keys but also on the promotion of decentralized finance that may have resulted from it. For him, the bugs in the code of smart contacts are in particular an important part of the risks associated with DeFi. They should not be minimized .

Apart from this question of smart contracts, some observers have also wondered about the transfer of crypto after death . Bruce Fenton, broker at Watchdog Capital, talks about setting up a test to ask the next of kin or the heir in question. For him, it is essential to think about this question upstream and to have a solution in mind.

Tom Dunleavy, an analyst at Messari, recalls that self-custody is not desired by 95% of the population . As perfect as this solution seems, it remains the prerogative of certain idealists.

For him, if we want to promote the adoption of crypto, it will take safe, transparent and trustworthy custody of assets . He reminds us that most people want safeguards and safeguards.

An interest in Ledger-type solutions

In terms of custody of cryptos, several solutions are available to the investor. First, many users, mainly for convenience, keep their assets on exchanges and centralized platforms.

This practical solution has one major flaw as we have observed recently. If this actor fails, you can say goodbye to your assets. Indeed, you do not have control over them and therefore risk losing everything.

Second solution, a Metamask type hot wallet . Here you hold the private keys of your cryptos. You therefore have control of them and can sell them at any time. However, this solution is not without risks and hacks are always possible .

The last solution is a cold wallet that will host your off-line private keys. Solutions like Trezor or Ledger allow you to keep your assets with an optimal degree of security . These solutions are a little more restrictive, although progress is made from year to year, but are the assurance of being able to sleep peacefully.

In recent days, Ledger, the French leader in cold wallets, has seen an influx of assets to its solutions. The technical director of the company says on this subject:

After the FTX earthquake, there is a massive outflow from exchanges towards Ledger's crypto security and self-custody solutions.

Many industry players, such as the CTO of Tether Paolo Ardoino, recommend favoring this type of solution to keep its assets safe.

The adage “ Not your keys, not your coins ” is more relevant than ever in the crypto ecosystem. A stone's throw from Christmas, there is no doubt that Ledger and its competitors should take pride of place under the Christmas tree of many investors...

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