For anyone entering the world of cryptocurrency, security should always be at the forefront of their mind.
You’ve no doubt heard the stories of people losing cryptocurrencies stored in digital wallets hosted by their exchange, and although it is rarer than you’d think, it doesn’t hurt to take the extra steps to secure your funds.
Digital assets exist as data, and any data stored on an internet-connected device is vulnerable to cyber-threats.
This is true of all data, not just cryptocurrency.
The answer to this threat is keeping your currency in “cold storage” when you aren’t actively trading or investing.
What is cold storage?
Cold storage is essentially the process of storing your cryptocurrency in an offline wallet, referred to as a cold wallet.
You only connect the wallet to the internet when you wish to send and receive cryptocurrency, as opposed to holding all your currency online at all times.
This is generally considered the most secure method of holding cryptocurrency and for a good reason.
Holding your digital currency in a hot wallet allows quick access to your funds, but it’s incredibly risky. Most experts wouldn’t advise keeping funds in a hot wallet for more than a few days at a time.
Here at ETERBASE, we take the most secure method offered by most exchanges and go even further.
Our clients' cold storage wallets are all stored with third-party custodians, meaning that there is an extra layer of security added to your funds.
Many investors in traditional markets insist on an unaffiliated third party separate from the exchange or financial advisor holding their funds.
Why should a digital asset exchange be any different?
Here at ETERBASE, we pride ourselves on being the first regulation-compliant European cryptocurrency exchange and providing cold storage with a third-party custodian is simply part of the service that separates us from the rest.
We also run external security audits, meaning that the technology keeping your funds safe is always going to be state of the art, and up to the job.
Over the coming weeks, we’re going to be bringing you more about what makes ETERBASE Europe’s premier digital asset exchange, so be sure to follow us on Twitter and Discord, and make sure you sign up for our newsletter.