Custodians may be the key to restoring the faith of crypto users in 2023
In 2022, we witnessed one of the biggest fallouts in the crypto world, which had left a staggering amount of users dazed and empty handed. Amidst the turmoil rose many questions: where do we go from here? Is leaving digital assets in crypto exchanges no longer safe? But perhaps the most important question is, what can we do to protect our assets and prevent another similar disaster from happening?
Coming up with a permanent solution for this is no easy task. Our minds often go to crypto wallets and while they do serve a purpose, not all wallets are easy to manage and they do not address the inherent risks of moving funds into and using a centralized platform.
There’s a certain level of ambiguity in leaving your funds centralized crypto exchanges
While it’s undeniable that users can benefit from using exchanges (and we all have), it does come with a few key concerns. And in the wake of recent events, those concerns sound off on a rather gloomy note.
One of the most glaring uncertainties of letting your coins sit in a crypto exchange is security. Most centralized platforms do implement strong security measures, such as encryption and two-factor authentication but even then, they aren’t immune to breaches. The bigger they get, the more attractive of a target they become, and unfortunately, many brands have fallen victim to this notion.
Another factor is asset control. No one likes to gamble with their money needlessly, but when you keep it in a crypto exchange, you’re kind of taking that chance. Depending on the platform, users are often subjected to potential mismanagement of funds or fraud, or, in some cases, both. It doesn’t mean all crypto exchanges are bad, but without experience and proper research, anyone can be at risk.
Crypto custodians take security to a higher level
Despite the growing scrutiny and concern among crypto users, there is a glimmer of hope.
Crypto custodians have been playing a critical role in safeguarding digital assets and their services may have become even more important in today’s financial climate. Utilizing technologies, such as MPC (multiparty computation) and segregated asset storages, custodians keep your property outside the reach of external parties. Unlike centralized platforms, crypto custodians are designed to have no single point of failure, making them extremely difficult to attack.
When assets are kept in a custodial wallet, funds will only move to an exchange when a trade happens, and even then all approvers must sign off on the transaction. This provides an extra layer of security.
Atato custody gives you full control
Unlike most standard custodians, atato does not interfere with our clients’ assets. We keep them in a segregated environment so you have your own workspace with any number of wallets.
Our systems do not allow us any influence on your funds, such as moving them to a different location. Atato’s MPC makes sure all your transactions are unanimously validated and secure.
Use our one-of-a-kind Bring Your Own Chain (BYOC) feature to add any EVM-compatible blockchain to atato custody. Assign a token of your own to the chain with BYOT (Bring Your Own Token).
The best security measure is still you
As your crypto custodian, atato will protect your assets with the best tools in the market and at the maximum of our capacity. However, there is one thing more powerful than any security tool – discretion.
Having a team of dedicated professionals by your side is one thing, but knowledge and a habit of proper research is perhaps your biggest advantage. As crypto continues to grow, vulnerabilities and malicious tactics will also advance. It’s always good to learn as much as you can before committing to a trade, a purchase, or an investment.