True Security Lies in Holding Your Keys

The risks associated with custodial wallets are significant since exchanges control private keys, leaving users vulnerable to hacks and potential asset loss. Cold wallets offer a secure alternative by storing private keys offline, thus providing users complete control over their cryptocurrency. These wallets are ideal for long-term investors, although they may not suit frequent traders who require quick access to their assets. Despite the technicalities and costs involved in setting up cold wallets, the trend shows a growing number of investors are opting to move their crypto, particularly Bitcoin, out of exchanges and into cold storage for enhanced security.