Crypto custody wallets are software programs or physical hardware devices that allows individual and business to store crypto asset securely as well as send and receive crypto currencies. Most digital asset management platform comes with hardware wallets that significantly improves security as well as reduces the risk of losing crypto tokens.
On the fundamental level, crypto currency wallet doesn’t store your actual crypto unlike traditional cash-based wallets. Your crypto currency holding live on the blockchain and owners can access their holding using a private key. The private key is critical. The private key help prove your ownership of digital assets as well as allows you to perform transaction on the blockchain via crypto currency wallet. So, if you lose your private keys, you lose access to funds stored using the digital asset management platform.
Usually there are three kind of custody wallets, one is paper wallets, second is hardware wallets, and third is online wallets. Storing keys by writing down on physical medium such as paper help keep the fund safe. Or else users can store keys in a thumb-drive devices in order to keep the fund safe and use crypto only then drive is connected to a computer. Online custody wallets are simplest of all and easy to use. It is designed to make the sending, receiving, and transacting or staking crypto currencies easy.
How to keep your crypto custody wallets safe?
Security tip: Encrypt your crypto currency wallet with a strong long-form password. Hot crypto currency wallets often pose security risk, so it is advisable to use hardware custody wallets or cold wallet that completely disconnected from the internet to store assets, whenever possible. It is important to remember that any device connected to internet or any kind of online services is vulnerable to attack. It is a good practice to back up your wallets used for digital asset management purposes as well as store the backup in different locations.
You reduce the risk of losing all your funds in one shot by opting for the multi-signature enabled digital asset management platform so that even if your one device gets compromised still you can withdraw funds using other keys. Try not to share private keys and password of your crypto currency wallet. It is very important that the mnemonic seed generated by the digital asset management platform or wallet should be cautiously written down on a piece of paper and must be stored in known location. These mnemonic seed is critical for restoring your custody wallets in case of serious hardware failure.
If you are looking for a digital asset management platform, one that makes crypto universe accessible for your organization, then liminal is the best solution for you. Liminal is among the most preferred secured, self-custody asset management platform that provides inbuild security systems, transaction monitoring functionality, and role-based corporate access controls as well as support multiple protocols and chains. Our unique features of liminal make us the best self-custody wallet platform for protecting your digital assets.
