With the rise in popularity of cryptocurrency, consumers are increasingly looking for reliable and secure solutions to store digital assets. However, this industry has many horror stories about stolen funds, lost passwords, or hacks. This is where
crypto custody providers come into play and they take care of the digital assets of their investors with some charges and give peace of mind.
Due to the need of ensuring the safety and security of digital assets, cryptocurrency custody services have grown to be a serious problem in the crypto industry. Digital assets custody providers provide services that let people and companies store and protect their cryptocurrency assets. We will go through what crypto asset protection services are in this article, their advantages, how to choose the best provider, and the top five companies.
What are Digital Custodians?
In the past, more wealthy individuals or institutions used custodians to safeguard their assets but with the passage of time came innovation. Digital custodians are third parties that safeguard, look after, and hold your digital assets on behalf of corporate bodies, institutions, or investors, they charge some fees and offer many packages of services. They are just like safe and secure cryptocurrency banks.
Those that hold and protect digital assets on behalf of investors, institutions, and other corporate entities are known as crypto custodians. They take care of your finances so you can return to earning more of it.
Advantages of Digital Assets Custody Service
Keeping track of your private keys is challenging. Therefore, in order to better assure that their funds cannot be accessed by hackers or other harmful actors, larger investors choose to leave the security of their digital assets to custodial services.
Investors may bypass the technical aspects of holding cryptocurrency and have peace of mind knowing their digital assets are safe by utilizing a custody. Companies that offer a safe storage option for digital assets like Bitcoin, Ethereum, and other cryptocurrencies are known as cryptocurrency custody services. They provide a variety of services, such as insurance, multi-signature wallets, and cold storage.
Since cold storage entails keeping private keys offline, it is the most secure method of storing cryptocurrency. This lowers the possibility of theft or hacking because the keys are not online.
It is more difficult for someone to steal money while using a multi-signature wallet because many signatures are required to approve a transaction.
Providers of cryptocurrency custody give their customers a number of advantages, including:
Security:
security is the key advantage of employing a Bitcoin custody provider. Users can keep their digital assets in a safe and secure environment utilizing a third-party service, lowering the chance of loss or theft.
In order to guard against loss due to theft, hacking, or other unanticipated occurrences, custody providers also provide insurance. They might also offer more services like trading, financing, and staking.
Secure Storage:
Crypto custody providers use cutting-edge security techniques, like cold storage wallets, multi-signature authentication, and physical security, to safeguard the digital assets of their clients.
Insurance:
The majority of custody providers provide their clients with insurance coverage, shielding them from any loss or theft of their cryptocurrency holdings.
Compliance:
Custody providers adhere to regulatory regulations, making sure that the digital assets of their clients are stored in a way that is consistent with the law.
Accessibility:
Clients of custody services have constant, round-the-clock access to their digital assets, allowing them to exchange or move their bitcoins whenever they want.
Comparison of Third-Party Custody vs Self-Custody
| |
Third-Party Custody
|
Self-Custody
|
| Best For |
Storing significant crypto assets |
Small Crypto Balances |
| Security |
Advanced Security |
The safety of your assets is entirely up to you |
| Fee |
Cost varies with case-by-case fees |
Software wallets: Free |
| Hardware wallets: Small fee |
| Complexity |
The custodian handles complexity on your behalf |
Securing seed phrases and wallets is complex and time-consuming |
| Assets Supported |
Primarily supports popular cryptocurrencies for storage |
Wallets generally support multiple crypto assets |
| Minimum Assets Required |
Minimum balance requirements are common |
Start with $0 in crypto |
Popularity of Crypto Custody Providers in Singapore
Custodians were formerly solely utilized by institutional investors and high-net-worth individuals because they were the only ones who required them. Due to the popularity of retail digital investments in the present day, the demand for digital custodians has increased tremendously and they opened their doors to everyone. Just like the rest of the world, the services of crypto custody providers in Singapore are currently in high demand like never before.
Top 5 Cryptocurrency Custody Providers in Singapore
BitGo:
BitGo has been a pioneer in digital asset storage since its establishment in 2013. As a certified custodian, BitGo administers more than 100 digital currencies and tokens using institutional-grade custody policy guidelines. Additionally, the company offers adjustable multi-user accounts and cold storage solutions.
Legal existence. Since its formation in 2018, BITGO SINGAPORE PTE. LTD. Doing business in Singapore for 5 years and 1 month.
Coinbase Custody:
Coinbase Custody is a top cryptocurrency custody service that provides 24/7 access to digital assets along with secure storage, insurance, and compliance. Known for its institutional-grade security, multi-signature authentication, and insurance protection, BitGo is a well-known cryptocurrency custody service.
Before sending any cash or DPT to Coinbase SG you should be aware.
Although Coinbase SG is not currently MAS-licensed, it has been granted in-principle authorization by MAS to offer DPT services. Please be aware that if Coinbase SG goes out of business, you may not be able to get back all the cash or DPT you paid.
DBS Vickers Securities:
Customers can invest through DBS Vickers Securities, a DBS-owned securities and derivatives brokerage firm, in initial public offers (IPOs), private placements, and stock exchanges. Additionally, it runs the DBS Digital Exchange, which offers professional investors access to member-only markets for digital assets including security tokens and cryptocurrency.
Digital Treasures Center (DTC):
A full license under the Payment Services Act (PSA) in Singapore allows DTC to offer domestic money transfer services, cross-border transfers, e-money issuance, and digital payment token services, including fiat-to-crypto pairings.
Atato custody:
Atato, a Singapore-based MPC-licensed crypto custodian, is pleased to provide cryptocurrency custody services that support a variety of Bitcoin and other digital assets.
Atato is dedicated to providing secure and reliable Crypto asset protection services that adhere to the highest regulatory standards. Atato is a licensed MPC crypto custodian with headquarters in Singapore. The company's MPC digital assets custody solution is built with strong security mechanisms, multi-factor authentication, and efficient customer support to offer institutional-grade security for digital assets.
How Can I Choose the Best Crypto Custodian?
There are a number of things to take into account when choosing a Bitcoin custody service. These consist of pricing, fees, insurance protection, reputation, and security measures.
The most crucial aspect to take into account when selecting a custody provider is security precautions. Look for businesses that provide multi-signature wallets, cold storage, and other security features.
Additionally, insurance coverage is crucial since it adds another level of security against theft or loss. Make sure you select a provider of custody.
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