With institutional interest in crypto surging, more people considering money allocations to cryptocurrency, and high-valued digital assets such as NFTs coming to market, and those endless asset hacked incidents, the need for protecting digital assets has never been greater. Regardless of the reasons for any individual organization to take on exposure to digital assets, one aspect remains consistent: protecting the private keys is critical.
Control and protection of digital assets, like private keys, should be viewed with an eye towards the ultimate needs for access and liquidity or the “use case,” as there are strengths and weaknesses to all of them.
Let’s break it down.
Do self-custody private keys
It’s the sole key to your wealth, keep it somewhere off the computer. Remember that with many forms of crypto, if you lose it, it’s gone — and it’s very rare to recover it.
2.Spread assets accross more than one digital wallet
No one never wants to keep all $100 million in one online wallet. If someone were able to hack or breach that one wallet, they would have access to everything. If fraud does occur, spreading assets across multiple wallets is a relatively easy way to reduce the severity of that loss. This is akin to opening up multiple accounts at a bank and spreading out your assets. Doing this for cryptocurrency is especially important given its digital nature, which opens it up to hacks and cyber attacks that can cause significant losses
3.Use cold wallet and hot wallet
let’s say you manage $100 million and want to make some trades. Unless you’re going to trade $100 million in any given day, you don’t need the full account balance in the more liquid hot wallet. You may be trading only 1%, 3%, or 5% of that portfolio, depending on strategy and size. If most of the digital assets are not changing and can be stored offline in a cold wallet, it is a much safer way to secure those assets. This is just like having a checking and savings account where you keep the amount you need for daily use in your checking and the surplus amount in a savings account where fewer transactional functions exist.
4.Hire specialty vendors to protect assets(Whale 6.level)
Several vendors have emerged that specifically focus on providing continual anti-money laundering (AML) and know your customer (KYC) checks — along with other compliance and administrative functions — so you can continue to focus on your core business. Additionally, third-party specialized digital asset custodians have emerged to serve the crypto marketplace. They are equipped to help meet custody regulatory requirements and provide independent accounting and audits of your assets.
5.Conduct your due check on assets and security
Check your crypto assets periodically and fully understand the current security environment of your digital assets.Timely discovery, timely disposal and timely stop loss.
6.Consult with experienced users
Consulting with experienced people and conducting case study can help you not only avoid catastrophic outcomes but also serve as one of the most important competitive advantages you can bring within this rapidly evolving ecosystem and they can point out areas of risk you may not have not yet considered.
7.A digital wallet is a must-have
Last but not least, as general users in the Web3 era, it is obvious and necessary to own an extreme secure, simple&practicable and highly efficient Web3 digital wallet. MySsistant meets above all and in addition, it is an All-In-One crypto assets management/tracking solution with people-centric features. We are dedicated to develop and improve a polyfunctional web3 wallet which helps users allocate, supervise and manage their crypto assets.
Becoming a victim of a fraudulent project is always possible where scammers are highly convincing and sophisticated. Although we hate this shameless behavior very much and try our best to prevent hack and loss of private property, seemed there is no way to eradicate. Hence it is highly advised that everyone should remain rational and carry out due diligence. Good luck!