CRYPTO

‘Cold wallets’ and other tips to keep your crypto safe

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The biggest collapse was that of the world’s then largest cryptocurrency exchange Mt Gox, based in Tokyo, which suspended trading in 2014, closed its website and commenced bankruptcy liquidation. This followed a theft of about 850,000 bitcoins – worth tens of billions of dollars – from the exchange’s digital wallet.

The anonymity that often attracts users to cryptocurrency also makes it easier for cyber criminals to steal these undetected assets.

The committee says it is not only cyber-criminals, but state-sponsored actors that are targeting digital wallets and exchanges.

Among its recommendations are that regulators and law enforcement agencies are resourced to meet the growing demands of the digital economy, especially in ways to better educate the public and combat sophisticated cybercrime.

Penn says that government and policy settings need strike the right balance between innovation, protection and oversight.

The committee also offers some practical tips that crypto investors can use to help ensure their digital wallets remain secure.

Cryptocurrency is stored in digital wallets, along with private keys.

Wallets are divided into two groups – “hot” wallets, where software is connected to the internet, and “cold” wallets” that remain outside cyberspace.

It is best to use an encrypted “cold wallet” in order securely store private keys,

Other advice includes:

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