How Businesses Can Protect Their Cryptocurrency

Regardless of the currency, businesses must safeguard their assets. This includes everything from intellectual property to the physical good they are creating or the service they are providing. There is always a significant amount of pressure to incorporate new technologies and trends into your business model to stay relevant and viable. Though it is well documented, look at how Blockbuster passed on acquiring Netflix for a relatively small sum of $50 million. Blockbuster is down to one store (in Bend, Oregon), and Netflix is worth over $80 billion.

The same pressure still exists with digital assets. Crypto created a space for individuals and businesses to transfer money securely and in real-time due to blockchain. Companies may be forced to at least consider using digital currency because their consumers and stakeholders prefer it. This article is about ways you can keep your digital assets safe. If your cryptocurrency is stolen or lost, it is extremely difficult (if not impossible) to recover them. 

Where to Physically Store Digital Assets

If you have cryptocurrency, you have a crypto wallet. You can store them in one or on an exchange. To access your wallet, you will have an alphanumeric code. This is your key to unlocking your funds. If you lose this, there is no customer service line to call or backup plan to consider. 

Establish protocols regarding which people will have to hold onto this code because it is just as valuable as the cryptocurrency you invested in. These codes can be kept in any secure location, such as a bank vault. “Cold storage” is a term for when people print their keys and eliminate their digital footprint. Furthermore, you will hear the terms “public and private keys.” Private keys can decrypt data, whereas public ones encrypt it. Your keys should be stored separately. 

By giving multiple people access to the code, you create contingency plans. 

Where To Digitally Store Your Currency

Though we mentioned digital wallets before, it should be noted that there are several types of wallets. Ask and learn about the security measures each employs and read reviews written by past users. New markets attract new players. Though the strongest ones will rise, we are still in the very early stages of an industry with massive competition. 

In addition to choosing a wallet, you may also choose to spread your currency throughout several wallets. For example, you may only keep a small amount of your money in your checking or debit account. If your card is stolen, they will only have access to what is in that account. Plan to minimize the damage if the worst should happen. The same applies to using a smaller amount of money in each digital wallet. 

Cueto Law Group

Contact the Cueto Law Group and schedule a consultation to discuss ways to protect your cryptocurrency. We have extensive experience protecting businesses from ransomware attacks as well. We look forward to working with you to safeguard your digital assets.