Asset managers, hedge funds, and high net-worth individuals (HNWIs) have been dipping their toes in cryptocurrencies. DeVere Group CEO Nigel Green recently said that there is a “growing retail and institutional demand for cryptocurrencies because it is becoming increasingly clear that the shift towards borderless, global digital currencies is inevitable.” Convenience and security With institutional investors flocking to own digital assets, security measures have come into the spotlight. Though the blockchain itself is highly secure, hackers frequently manage to steal funds by exploiting human errors, blind spots, and other weaknesses. Institutions are extra cautious with their assets because the stakes for them are much higher than for an average Joe. When it comes to the custody of their crypto assets, users have a wide variety of options to choose from. Hot wallets such as desktop wallets, online wallets, and mobile wallets are always connected to the Internet. They are convenient, but highly risky because they are an easy target for hackers. Cold wallets such as the Trezor and the Ledger Nano X are much more secure. They are not always connected to the Internet. You have to connect them to the Internet when it’s time to execute transactions, which is when the attackers could target your wallet. Also, it’s not uncommon for hardware wallets to get stolen, suffer from software issues, or deteriorate over time. From wallets to ...
