“Bitcoin, A decentralized store of value”
The blockchain and crypto-asset ecosystem have developed and evolved
significantly since Bitcoin’s creation in 2009. Since then, many
innovations have come to the market which seeks to bring crypto and
blockchain adoption to the forefront of tech innovation. One major
problem that still plagues the space, the securely storing, transacting, and
accessing of private keys and making the technology usable for
everyone.
“Becoming your own bank”
The idea of becoming “Self-Sovereign” with your wealth was a major
component of Bitcoin’s whitepaper. The idea of a peer-to-peer digital and
the decentralized network would allow anybody to be able to transact, trade, barter outside of the “broken financial system” according to Satoshi
Nakamoto, author of the Bitcoin whitepaper. While this point is still
heavily published as the main feature and reason for crypto throughout
social media by most crypto enthusiasts, being your own bank isn’t for
everyone.
“High risk requires high security”
“Being your own bank” is a high-risk venture. Securing your wealth is not
an easy task when it comes to being solely responsible for your digital
wealth with the digital aspect alone is daunting for even the most
seasoned crypto-asset investor.
First, create a wallet with a 24-word seed key, and don’t forget it. Next, transfer all your assets to your new wallet and then securely store
it.
Lastly, physical security, where do you store the key? Where do you store
the recovery key? If you write it down you must be sure to keep this
backup key secured from prying eyes.
Some investors will hold these keys at their house, on a secure USB
device, in a safe, or hidden in a desk but most often will opt for storing
them in a safety deposit box in… a bank. The idea of being your own
bank is great for some, but it’s not for everyone.
“Institutions need custodians”
Institutional requirements with any asset class always require secure
custody offered and administered by a 3rd-party custodian. These 3rd-
parties will come with many protections to the investors such as regular
audits, regulatory oversight, and importantly, insurance. For these
investors, either they are not ready to become their own bank, don’t wish
to be, or legally are unable to. Custody providers for digital-assets are
forming an important and valuable part of the crypto ecosystem by
providing a secure, regulated, and easy way to gain access to the crypto-
asset space. Custodians of traditional financial assets are capitalizing on
this opportunity by offering not only custody but also: trading, lending, and interest-earning on crypto to their existing client-base to expand their
offerings.
“Trusted crypto-custody”
A crypto-custody service works just like a normal crypto wallet that
supports both deposits and withdrawals that you would experience with
any other crypto-exchange or mobile wallet. All custodians offer a high-
security solution for storing and holding crypto-assets and most
importantly hold insurance policies against theft or loss. Most custody
solutions charge a fee for using their services, either a monthly retainer
or a percentage based on funds under management.
Traditionally, most of these services were reserved for Institutions and
high net worth individuals as the cost of custody assets in traditional
the market is a high-volume, low margin exercise. With crypto-assets
however, the same technology can be expanded to include all market
participants at a fraction of the cost through the use of blockchain
technology and bank-grade encryption methods.
“Insured crypto-assets = Peace of Mind”
One of the most important things that crypto-asset custody includes in
top-level extendable insurance on assets under management. Custodians
offering insured solutions for crypto-assets give the investor a way to
store their assets in a much more secure way than they could do themselves, but also offer peace of mind their assets are protected
against theft or malicious loss.
How can regular investors benefit from all of the positives that custodians
offer, without having to learn all the jargon, do separate onboarding
processes and pay all the fees?
“coinpass offers an insurance cover of your crypto-assets”
Secured, Insured, and Highly Available crypto wallets shouldn’t just be
reserved for institutions and banks, it should be for everyone! Our insured
wallet solution is now available across our range of products for all
coinpass.com account holders. Whether you’re an investor that buys and
holds, a high-frequency crypto trader, or a business looking for a way to
securely take crypto payments, we’ve got you covered.
Coinpass Limited’s wallet solution carries extensive insurance for crypto-
assets and robust security measures for all private keys. Meaning, your
crypto is always protected against theft, malicious actions, or loss.