MusiKhan, a native Tune-to-Earn mini app built on Telegram and powered by HanChain, connects legally verified music copyrights with blockchain-based utility. Through staking, streaming, and performance-driven rewards, it transforms music into a real-world asset class within the decentralized economy.
Recently, MusiKhan achieved several significant milestones that strengthen its position within the TON ecosystem.
The project was approved for the TON Nest Grant Program, a recognition that validates MusiKhan’s technological capabilities and its potential to contribute to the broader TON ecosystem. MusiKhan has also secured a grant from STON.fi, further reinforcing its role as a key innovator within TON’s DeFi landscape. Together, these grants highlight the project’s credibility as one of the pioneers bringing real-world music copyrights into Web3.
Alongside these achievements, MusiKhan has been officially listed in Telegram App Center’s Staking Section. This milestone expands MusiKhan’s visibility to millions of global Telegram users, providing direct access to a growing audience already engaged with TON-based services.
These accomplishments mark a new chapter for MusiKhan as it continues to grow its catalog of exclusive Web3 music assets and solidify its role as a core player in TON’s emerging DeFi and content ecosystem.
The rise of cryptocurrencies and blockchain technology has brought new challenges in verifying online identities. With bots and artificial intelligence becoming more sophisticated, simply using CAPTCHAs is no longer sufficient. New solutions are emerging to reliably distinguish real human users from bots and fake accounts. Being able to prove you are human is becoming critical in the world of crypto.
The Threat of Bots and Synthetic Identities
Bots have become ubiquitous on social media, in online games, and across the internet. They are used for spreading misinformation, artificially inflating follower counts, conducting coordinated attacks, and unfairly winning competitions or earning rewards. With advancements in AI, bots are now capable of convincingly mimicking human behavior.
Synthetic identities, or fake accounts controlled by bots, are also used for nefarious purposes like scamming and manipulating markets. On blockchain platforms, these fake accounts can be used to game incentives, extract value, and attack protocols. Reliably determining whether an account is run by a real human is critical.
CAPTCHAs and Beyond
CAPTCHAs have been the go-to solution for distinguishing humans from bots online. Users are presented with tasks like identifying distorted text or objects in images, which are easy for humans but difficult for bots. However, modern AI can now solve many CAPTCHA challenges with high accuracy. More advanced proof-of-human tests are required.
Some solutions use behavioral analysis and machine learning to detect patterns characteristic of bots and flag suspicious accounts. However, these methods are imperfect and it can be challenging to keep up with evolving bot tactics.
Cryptographic Approaches
More robust cryptographic approaches are emerging to address the limitations of CAPTCHAs and purely AI-driven solutions. These introduce cryptographic challenges that require a human to be present to solve.
For example, World ID uses what’s called an Orb to capture images of the user’s face and eyes and generate a unique iris code. This iris data is immediately encrypted and sent to the user’s phone, and then it is deleted from the Orb. The iris code is processed through advanced anonymization techniques to create a cryptographic proof of being human without retaining any personal biometric data. This allows verification of unique humanity while preserving privacy.
This process is designed to confirm users are unique, real humans, not to identify them. The decentralized and open source nature of systems like World ID will also allow the challenges to adapt to evolving threats of bots and synthetic identities.
Tradeoffs and Considerations
There are still challenges and tradeoffs involved in identity verification systems. Convenience and accessibility need to be balanced with security. Some cryptographic approaches require purchasing additional hardware, which poses adoption challenges.
Protecting user privacy is also critical, as biometric data could be exploited for surveillance. Systems use zero-knowledge cryptography to preserve privacy. The human challenges remain robust while minimizing data collection. As AI advances, new identity verification systems are required to distinguish real human users from bots and synthetic identities. CAPTCHAs alone are no longer sufficient as bots become more sophisticated. Emerging cryptographic proof-of-human approaches introduce challenges that are easy for humans but difficult for bots. With careful consideration of tradeoffs, decentralized identity platforms may enable reliable identification while protecting user privacy.
To maintain leadership in the rapidly changing altcoin industry, real-time accurate information is essential. AltcoinBeacon establishes itself as the essential resource for crypto investors who want timely altcoin information alongside thorough research and expert market analysis.
Due to its dependable editorial standards and consistent delivery of accurate information, AltcoinBeacon continues to guide investors safely throughout the intricate digital asset ecosystem.
The contemporary crypto marketplace requires investors to understand more than simple trends about popular coins for achieving success. Investors need detailed understanding of new altcoin projects and blockchain technology developments as well as current regulatory changes to make informed decisions.
AltcoinBeacon solves the essential problem by offering prompt and reliable information which enables readers to understand current trends and maintain preparedness for smart investment choices.
According to Syed Ali Haider who serves as Senior Editor at AltcoinBeacon, “Modern crypto investors aren’t satisfied with basic headlines.” Investors want specific actionable information that helps them anticipate risks while receiving analysis which reflects market dynamics.
Journalists at Altcoin Beacon provides readers with live market intelligence through their commitment to both precise reporting and deep analytical capabilities.
What Makes AltcoinBeacon Different?
The primary distinction of AltcoinBeacon stems from its primary focus of the entire altcoin sector. Readers will find complete information through the platform about new token launches as well as important regulatory changes and blockchain technological breakthroughs and groundbreaking partnerships.
The research articles of the publication provide in-depth analysis of important trends including DeFi innovations, NFT integrations throughout different ecosystems and Layer 2 blockchain solutions becoming increasingly prominent. All content undergoes strict fact-checking procedures, so investors receive the most dependable information for their strategy development.
AltcoinBeacon distinguishes itself from other platforms since it operates in an industry where false information often misleads users. While sensationalism drives less trustworthy platforms AltcoinBeacon upholds journalistic integrity by delivering supported analysis to readers during all market conditions including volatile periods. Through this approach investors gain better education while receiving protection from fraudulent crypto activities that still affect the space.
A Commitment to Investor Empowerment
The main objective of Altcoin Beacon remains to empower investors through its platform. The platform provides detailed market explorations along with real-time reporting to help readers develop essential knowledge for successful altcoin market participation.
AltcoinBeacon serves as an authoritative guide that helps investors who are experienced or new to digital assets to safely explore the fast-evolving world of digital assets. The platform’s dedication to clear explanations and expert insights combined with its relevance has earned it worldwide recognition as a respected authority among investors.
About AltcoinBeacon
AltcoinBeacon functions as a top crypto news outlet which delivers real-time unbiased expertly researched information about the altcoin market. AltcoinBeacon stands as the trusted authority for digital asset exploration beyond Bitcoin because of its commitment to precise research and deep market understanding and investor empowerment practices.
ABD Systems, a company with over 13 years of experience in IT solutions, recently announced that its new crypto project, the ABDS Token, successfully completed KYC verification through CertiK, earning high recognition in the process. This achievement wasn’t just the standard KYC check but was done with special distinction.
The ABDS Token, a new crypto project focused on making digital finance simpler, safer, and more accessible, recently reached a significant milestone by earning the highly coveted CertiK Gold Badge.
This achievement marks a big step forward for ABD Systems, the company behind the project, and its growing user base. It enhances trust and positions the project as a credible player in the crypto industry.
The CertiK Gold Badge is the highest level of certification that this well-recognized company can offer, awarded only to projects that meet the strictest security and transparency standards.
By achieving this, ABDS Token has demonstrated its strong commitment to following rigorous Know Your Customer (KYC) verification procedures. These procedures involve a comprehensive review of the team behind the project, ensuring their legitimacy and dedication to maintaining a secure platform.
For investors and users alike, this level of scrutiny offers reassurance that ABDS Token is trustworthy and built on a solid foundation of accountability.
Moreover, this recognition is particularly important as it strengthens the project’s credibility at a time when trust is a critical factor in the industry. Further, this distinction solidifies the project’s position and reassures the community that it is managed by a reliable team with a proven track record.
Besides, the timing of this achievement couldn’t be better, as ABDS Token was recently listed on well-known exchanges like MEXC, BitMart, LBank, and DigiFinex, with more listings expected soon. The CertiK Gold Badge only adds to the momentum, making it easier for the project to attract new investors and partners.
What’s ABDS Token and How This Secure and Accessible Solution for Digital Finance Has Got the Attention of So Many People
ABDS Token, built on the Ethereum blockchain, offers a unique blend of top-tier digital security and personalized support.
What truly makes ABDS Token stand out is its focus on making digital finance more approachable and user-friendly. Unlike many crypto projects that operate only in the digital realm, ABD Systems goes a step further by providing a secure token and in-person support at its physical locations.
Also, ABDS Token integrates seamlessly into the broader ABD Systems ecosystem, offering various real-world uses. It enables users to make payments for products and services, unlock premium features within the network, and participate actively in the platform’s governance.
Additionally, those looking to maximize their investment can stake their tokens to earn rewards, further enhancing the token’s appeal.
About ABD Systems
ABD Systems was founded in 2009 by two visionary entrepreneurs. They started with an ambitious goal: to become a leading technology company in their home country.
Over time, the company has grown into a major force in the IT sector, driven by a strong focus on innovation, collaboration, and continuous growth.
What sets ABD Systems apart is its dedicated team, working together to tackle challenges and achieve collective success.
The company’s mission is rooted in creating a future without limits. Its core values also guide ABD Systems in developing cutting-edge technologies and simplifying processes that positively impact society and local communities. Thus, its commitment to excellence is especially evident in its wide range of products and services tailored to citizens and government sectors.
With the recent launch of the ABDS Token, ABD Systems is taking its tradition of innovation to the world of digital finance. Their goal is to build a more inclusive and secure financial environment for everyone, further solidifying their position as a forward-thinking leader in technology.
Contact
To learn more about ABD Systems, check out the ABDS Token, and stay updated on future distinctions they’ll have by visiting the official website. Moreover, you can follow them on X (formerly Twitter) to stay updated on the latest news and developments.
As Bitcoin transitions from a niche interest to a mainstream financial asset, various investment avenues have emerged beyond direct purchase. This article explores the expanding landscape of Bitcoin ownership, including ETFs, ETPs, and Trusts, reflecting its growing acceptance. According to the 2023 Global Crypto Hedge Fund Report by PwC, CoinShares, and AIMA, spot trading in crypto-assets has surged, with 69% of hedge funds participating, up from 43% the previous year. The report also highlights a decline in derivative investments due to counterparty risks. This article examines these trends and the performance of digital asset funds, offering insights into the evolving strategies of crypto hedge funds.
From a niche for blockchain enthusiasts, Bitcoin continues to grow and gain acceptance as a mainstream financial instrument. As the adoption has risen, different ways are arising to own the asset other than the traditional way of buying the asset directly such as ETFs, ETPs, Trusts, etc.
According to the 5th Annual Global Crypto Hedge Fund Report (2023) by PwC, CoinShares, and AIMA, over two-thirds (69%) of all participants in the survey are engaging in crypto-asset investments through spot trading, a notable increase from 43% in the previous year’s report. The survey was conducted in Q1 2023 across a sample of 131 crypto-native hedge funds.
In contrast with directly investing in the spot market of cryptocurrencies, several alternatives exist such as derivatives, venture capital, and structured products. According to the PwC report, the proportion of respondents investing in crypto-assets via derivatives declined to 38% in 2023, down from 52% in 2022, possibly due to a heightened awareness of risks associated with counterparties such as Genesis and FTX.
91% of Digital Asset Funds are Invested in Bitcoin
Source: PwC, CoinShares, AIMA
The majority of crypto hedge funds performed significantly better than the price of BTC during 2022. While Bitcoin’ performed -64% from 31 December 2021 to 31 December 2022, most strategies handled the bear market better than the benchmark (with the exception of fund of funds).
Digital Asset Fund Performance by Strategy 2022
Source: PwC, CoinShares, AIMA
Regarding investment strategies, 31% of respondents in 2023, up from 2022’s 10%, are taking a passive approach. The complexity of the technology in this sector can be challenging for those not deeply immersed in it. Consequently, a growing number of fund managers seem to be opting for passive strategies to access this market despite passive strategies returning a loss of 37% on average in 2022.
In the realm of hedge funds, 23% report utilizing actively managed funds or funds of funds for their crypto-asset investments. Additionally, 15% indicate their involvement through venture capital investments in this sector.
For investors that want exposure to Bitcoin without handling their own private keys, there are several alternatives such as passive funds, active funds, mining stocks, and venture capital. This section dives into some of the household names in the Bitcoin ecosystem.
Assets Under Management of Largest Bitcoin Passive Products
#
Fund
AUM ($)
Inception Date
Expense Ratio
Domicile
1
Grayscale Bitcoin Trust (GBTC)
Grayscale is the world’s leading crypto asset manager in assets under management with around $24 billion just under their Bitcoin Trust. It has similar trust for other cryptocurrencies like Ethereum, Litecoin, Solana, etc. The investors are issued shares against the capital they invest and the trust purchases BTC with the invested money. The price of a share reflects the value of Bitcoin held per share. However, the price of a share may not reflect the true value of the Bitcoin held as it may be sold at a premium or discount. Additionally, it is not available for exchanges and only over-the-counter (OTC).
$24.05B
25/09/2013
2.0%
United States
2
Purpose Bitcoin ETF (BTCC) BTCC is the world’s first and largest spot Bitcoin ETF with $1.4 billion in assets under management. Based out of Canada, it provides investors an opportunity to own BTC without going through the hassle of creating an account or wallet for purchasing Bitcoin.
$1.4B
09/11/2021
1.49%
Canada
3
ETC Group Physical Bitcoin (BTCE) Based out of Germany, BTCE is the largest spot Bitcoin ETP in Europe with $1.04 billion in assets under management. It is also the first European Bitcoin ETP to offset its carbon emissions. 100% physically backed by Bitcoin, it offers the investors an alternative to selling on the exchange by letting them redeem the ETP for actual Bitcoin.
$1.04B
08/06/2020
2.0%
Germany
4
XBT Provider Bitcoin Tracker Euro (COINXBE) Launched in 2015, XBT Bitcoin ETP is the world’s first Bitcoin-based security available on a regulated exchange, allowing for convenient exposure to the leading digital asset. Based out of Sweden, it has $778 million in assets under management and it closely tracks the price of actual Bitcoin.
$778M
18/05/2015
2.5%
Sweden
5
CoinShares Physical Bitcoin (BITC) CoinShares physical Bitcoin ETP offers investors a straightforward alternative to directly buying Bitcoin. Domiciled in Jersey, it has $531 million in assets under management. Users can also redeem the fund units for actual Bitcoin.
$531M
19/01/2021
0.98%
Jersey
6
21Shares Bitcoin ETP (ABTC) 21Shares Bitcoin ETP (ABTC) is 100% physically backed by BTC. It tracks the performance of BTC and offers investors a simple and secure way to gain BTC exposure in their portfolio. Based out of Switzerland, it has $519 million in assets under management.
The evolving landscape of Bitcoin investment reflects its growing stature in the financial world. This article has delved into various investment options, from direct purchases to sophisticated financial products like ETFs, ETPs, and Trusts. The insights from the 2023 Global Crypto Hedge Fund Report reveal a noticeable shift towards spot trading among hedge funds, indicating a preference for simplicity amid complex market conditions. Conversely, the decline in derivative investments underscores heightened risk awareness. As fund managers adapt, exploring passive and active strategies, the crypto investment domain continues to reshape, promising diverse opportunities and challenges for investors keen on leveraging Bitcoin’s potential.
In the ever-evolving landscape of cryptocurrency, securing digital assets is paramount. This article explores three key methods of Bitcoin storage that balance security and accessibility: multi-signature wallets, hardware wallets, and air-gapped cold storage.
Multi-signature wallets, offered by providers like Ledger Institutional, Casa, and Unchained Capital, require multiple private keys for transaction authorization, enhancing security. Hardware wallets, such as Trezor and Ledger, provide offline storage for private keys, safeguarding them from online threats.
Additionally, air-gapped cold storage, exemplified by the Glacier Protocol, offers the highest level of security by keeping Bitcoin reserves offline, though it may limit immediate trading capabilities.
1. Multi-signature Wallets: Requires multiple private keys to authorize a Bitcoin transaction. Provides a balance between security and accessibility. Notable multi-signature wallet providers include:
Figure 42: Multi-signature Wallets
#
Multi-signature Wallet Provider
Inception Date
Domicile
1
Ledger Institutional Borrows some of the principles of multisignature to create a quorum of administrators for institutional clients.
2014
France
2
Casa Known for its multi-signature and geographically distributed key storage solution.
2016
USA
3
Unchained Capital Offers collaborative custody, a blend of user and third-party multi-signature keys.
2. Hardware Wallets: Physical devices such as Trezor or Ledger that securely store private keys offline.
3. Air-gapped (Cold) Storage: Keeping a reserve of Bitcoin offline. Provides the most security but lacks immediacy for trading. The gold standard for cold storage that is self-custodied is the Glacier Protocol. Available at glacierprotocol.org, the Glacier Protocol is a 78-page PDF that gives step-by-step instructions for how to self-store large amounts of Bitcoin.
As cryptocurrency continues to grow, selecting the right storage solution is crucial for safeguarding digital wealth. Multi-signature wallets offer a balanced approach to security and usability, making them ideal for institutional and individual users alike. Hardware wallets provide a secure offline option for those wary of online vulnerabilities.
For those prioritizing maximum security over convenience, air-gapped cold storage like the Glacier Protocol proves indispensable. By understanding and leveraging these storage methods, users can protect their Bitcoin holdings against an array of digital threats, ensuring their investments remain secure in the dynamic crypto environment.
In the dynamic world of cryptocurrency, the roles of fiat and Bitcoin custodians are pivotal in bridging traditional finance with digital assets. While fiat custodians are typically licensed banks, Bitcoin custodians often operate outside this framework, with exceptions like AMINA, which serves as both. This article explores the landscape of top custodians, highlighting their inception, domicile, and unique offerings.
It also delves into the insurance policies provided by traditional insurers like Aon and Lloyd’s of London, which have ventured into the crypto space. Additionally, the article examines the growing trend of self-custody, driven by security concerns and the collapse of centralized service providers.
Fiat custodians typically hold traditional currencies and may offer services for converting fiat to crypto and vice versa. The main difference between Bitcoin custodians and fiat custodians is that fiat custodians are licensed banks, whereas most Bitcoin custodians are not licensed banks. A notable exception to this is AMINA, which is both a Bitcoin custodian and a licensed bank.
Top Bitcoin Fiat Custodians for Institutional Investors
#
Custodian
Inception Date
Domicile
1
BNY Mellon The Bank of New York Mellon Corporation has signaled interest in acting as a fiat custodian in the crypto space.
2007
USA
2
State Street Another major traditional financial entity that’s shown interest in the crypto realm.
1792
USA
3
Fidelity Digital Assets A trusted financial institution with dedicated Bitcoin custody and execution services.
2018
USA
4
BitGo A pioneer in institutional crypto custody, known for advanced security features for Bitcoin.
2013
USA
5
JP Morgan Chase One of the largest global financial institutions provides crypto-friendly banking services to exchanges and digital asset firms such as Gemini.
Banks that Work with Bitcoin and Bitcoin Businesses
Typically, major custodians (like Coinbase Custody, Fidelity Digital Assets, and BitGo) offer some form of insurance coverage for their clients’ Bitcoin holdings. For example, BitGo maintains a $250M insurance policy on digital assets whereas BitGo Trust Company maintains all of the keys. Specifically, the policy covers copying and theft of private keys, insider theft or dishonest acts by BitGo employees or executives, and a loss of keys. Traditional insurers such as Aon and Lloyd’s of London have ventured into the crypto space, providing policies for crypto custodians and other businesses.
#
Custodian
Inception Date
Domicile
1
Aon Offering a crime policy to protect against the loss, damage, destruction or theft of digital assets in secure premises or in transit or transmission and also internal and external fraud, including electronic theft, which would include hot wallet protection.
1982
USA
2
Lloyd’s of London Insuring the largest custodians in the Bitcoin space for years including BitGo and Crypto.com.
1688
UK
3
Munich Re Protects against theft and permanent loss of digital assets. Provides insurance for the cryptocurrency staking service offered by Boerse Stuttgart Digital, the crypto-focused arm of the Stuttgart Stock Exchange
Since 2020, a noticeable downward trend can be seen in the exchange balance of Bitcoin, indicating that Bitcoin owners remove their Bitcoin from the exchange after making a purchase instead of leaving their Bitcoin in the exchange. The amount of Bitcoin on exchanges is currently at a 5-year low.
BTC Flows Off Exchanges Suggest Self-custody Trend
Besides black-hat hacking, 2022 was also riddled with collapses and bankruptcies of centralized service providers, including Celsius and FTX. These events highlighted that funds are not safe unless they are in self-custody. In response, more and more users are purchasing hardware wallets. After FTX went down, wallet manufacturer Trezor posted a 300% growth in revenue figures and sold more devices than at the height of the bull market. This trend is set to continue and market researchers project that the market for hardware wallets will grow from $285M to over $1.4B by 2030.
The convergence of traditional finance and digital assets is reshaping the custodial landscape. As explored, both fiat and Bitcoin custodians play critical roles in ensuring the secure transition and storage of digital currencies. With institutions like BNY Mellon and JP Morgan Chase showing interest in crypto, and insurers expanding into crypto coverage, the integration of these two worlds is set to deepen.
However, recent trends indicate a shift towards self-custody, spurred by financial uncertainties and the rise of hardware wallets. As the market evolves, the focus on robust security measures and diversified custody solutions will be paramount for safeguarding assets in this ever-changing environment.
In 2022, the cryptocurrency world faced unprecedented challenges, with a staggering $3.8 billion lost to cybercrime, primarily targeting DeFi protocols and centralized exchanges. This alarming figure underscores the critical importance of secure storage solutions for digital assets, especially for institutional investors.
As the crypto landscape evolves, the need for robust custody options has never been more pressing. This article delves into the various facets of crypto custody, from centralized and fiat custody to self-custody, highlighting the significance of choosing experienced and reliable custodians. It also explores the revenue models of these custodians and the essential role of advanced security technologies in safeguarding digital assets.
$3.8B Stolen in Crypto Hacks in 2022
The loss of cryptocurrency due to hacks and the bankruptcy of centralized exchanges such as FTX has made the topic of custody even more important. Institutional investors who do not want to hold their own keys can use a custodian to store their digital assets. However, it is important to note that not all custodians are made equal and that some custodians do fail. In 2023, the Bitcoin custodian Prime Trust was sent into receivership by the Eighth Judicial District Court of Nevada due to a “substantial deficit between its assets and liabilities.” Therefore, it is crucial to look for custodians who have many years of experience without a hack, substantial equity on the balance sheet, and client assets are segregated on the custodian’s balance sheet.
Introduction
In an era defined by the rapid evolution of technology and finance, cryptocurrencies have emerged as a groundbreaking financial asset class. They promise financial sovereignty, borderless transactions, and unparalleled opportunities for growth. However, as the crypto landscape continues to expand, so do the challenges surrounding the security and custody of these digital assets, writes Yves Longchamp, Managing Director and Head of Research at AMINA Bank.
In this evolving ecosystem there is a need for thought leaders in the industry to talk more openly and candidly about crypto security and custody. Let’s start by sharing some valuable advice that will look to make your crypto journey smoother and help you find the right partner, one that embodies the pinnacle of best practices in this space.
Understanding the Basics
First thing’s first, let’s break down some important crypto terminology. When we talk about custody, we’re essentially talking about how you secure and manage your digital assets. Think of it as the way to safeguard your most prized possessions.
Now, digital assets are not like traditional bank accounts or physical assets. There are no bank vaults here. Instead, your digital assets are stored on the blockchain, and you access them using private keys. These keys are the linchpin of your security strategy, and their protection is paramount. Understanding how keys, wallets, and other advanced technologies work is essential to foolproof digital asset protection, which is the exact expertise a trusted custodian can provide.
The Cardinal Rules of Crypto Custody
Rule 1: Choose Your Custodian Wisely
Imagine entrusting your priceless artwork to a world-renowned museum. In the world of digital assets, selecting the right custodian is equally critical. Look for a custodian that aligns with high security and regulatory standards and has a proven track record. Such a partner will ensure your assets are treated with the utmost care and due-diligence, ensuring your assets are segregated from its balance sheet.
Rule 2: Seek the Specialized Knowledge of Expert Partners
While institutions wield significant expertise, navigating the complex landscape of cryptocurrency custody is best done in partnership. Custodians bring a wealth of specialized knowledge, cutting-edge security infrastructure, and a depth of experience that is unparalleled. Seek a custodian who seamlessly combines technical prowess with user-friendly interfaces, simplifying your journey.
Rule 3: The Wallet Dilemma
Just as you have an array of investment instruments at your disposal, choosing the optimal wallet type is vital. Two primary categories are hot and cold wallets. Hot wallets, like a well-connected office, offer fast transactions but are susceptible to external breaches. Cold wallets, providing physical protection like a secure vault, are offline and virtually impenetrable. Keeping both a hot and cold wallet is advisable, especially when interacting with the internet regularly. Hot wallets will help you buy and sell instantly, and cold wallets will secure your assets against external risks. Institutions have the luxury of tailored solutions, such as a mix of both wallets, that align with their specific security and operational needs.
Rule 4: Diversify, Diversify, Diversify
Diversification is the cornerstone of crypto security. Just as you wouldn’t pool all your traditional assets in a single basket, spreading your digital holdings across various wallets, particularly secure cold wallets, multiplies your safety net. Look for a custodian offering a comprehensive suite of wallet options, ensuring your assets remain resilient against any eventuality.
Rule 5: Harnessing Advanced Technologies
The crypto landscape is replete with innovative security technologies. Multi-Signature (Multisig) and Multiparty Computation (MPC) stand as the vanguards. Multisig mandates multiple signatures to authorize transactions, rendering it virtually impervious to hacks. MPC, the more intricate sibling, divides private keys into indecipherable fragments, thwarting even the most determined attackers. Seek a custodian that deploys these advanced safeguards to fortify your assets.
Conclusion
As you venture through the complex realm of digital wealth and assets, security remains paramount. Your chosen custodian should epitomize cutting-edge security, unwavering regulatory adherence, and a steadfast commitment to preserving your assets’ integrity.
In this quest for the ideal custodian, consider regulated custodians with a consistent track record and high security standards–– it will ensure that your coins are segregated from the custodian balance sheet. Collaborating with an established custodian allows you to benefit from the latest technology. Use a mix of cold and hot wallets to manage your coins, as this combination provides high security and convenience.
Diversify! Use a wide range of wallet options as you don’t want to pool all your assets in one single wallet. Finally, be sure the custodian is replete with innovative security technologies such as Multisig and MPC.
As you embark on this thrilling digital voyage, remember that your institution’s strength is contingent upon the security it embraces. Choose your custodian carefully, as it is a beacon of security, poised to safeguard your digital wealth with the utmost care and due-diligence.
As institutional investors venture further into the realm of Bitcoin, the question of secure storage becomes increasingly crucial. The unique characteristics of digital assets require specialized solutions that ensure both the safety and accessibility of significant portfolios. This article examines the different categories of custody—centralized Bitcoin custody, centralized fiat custody, and self-custody—highlighting how the roles of brokers and custodians have evolved over time.
From companies like Bitcoin Suisse that combine brokerage and custody services to innovative solutions like Etana Custody that facilitate fiat transactions discreetly, we explore the diverse landscape of custody options. Moreover, we delve into the revenue models of these intermediaries, outlining how they generate income through various fees and investments.
After an institutional investor buys Bitcoin via an exchange, broker, OTC desk, or miner, the next question is, “How can I safely store Bitcoin?” In the evolving landscape of digital assets, the secure storage of Bitcoin has emerged as a paramount concern, especially for institutional investors managing significant portfolios. The unique nature of cryptocurrencies necessitates storage solutions that offer both rigorous security and seamless accessibility.
This chapter breaks custody into three main categories: centralized Bitcoin custody, centralized fiat custody, and self-custody. The earliest firms in the Bitcoin ecosystem fulfilled both the role of broker and custodian since few companies existed in the space. For example, Bitcoin Suisse in Switzerland is both a custodian and a broker. Over time, the different roles became specialized, and companies focused solely on custody emerged. There are different types of Bitcoin custodians, including custodians that take delivery of Bitcoin and Bitcoin custodians that use white-label storage technology and then sell to third-party companies that want to store their client’s assets in a familiar interface. In addition to Bitcoin custodians, fiat custodians work with Bitcoin companies.
For example, when an investor has fiat sitting on an exchange such as Kraken, that does not mean that Kraken is storing the fiat in Kraken’s corporate bank account. Kraken and other exchanges cannot hold onto fiat for customers. They must rely on banking partners such as Bank Frick in Liechtenstein to facilitate fiat withdrawals and deposits. Since many banks faced backlash from regulators for facilitating Bitcoin purchases, a new category of fiat routing software companies arose. Companies such as Etana Custody, based in Denver, Colorado, allow banks to hide behind the Etana brand to avoid negative media and regulatory consequences. Etana does not take custody of the fiat currency held by Kraken users but rather routes the fiat transaction to a series of member banks that handle settlement.
Revenue Steams of Bitcoin and Fiat Custodians
Source: Cointelegraph Research
Each intermediary charges fees for their service, and not all intermediaries are made equal. Bitcoin custodians that are also brokers, such as Bitcoin Suisse can charge basis points on order amounts plus ongoing custody fees. Bitcoin custodians that sell white-labeled software such as Copper can charge a wide scale of fees on assets under custody plus monthly support fees. Fiat custodians such as Etana Custody earn income by investing exchange users’ fiat into treasuries and earning a percentage on those assets. None of the yield from the treasuries is passed back to the original owner of the fiat.
The following sections delve into the various institutional-grade storage options available, ranging from specialized Bitcoin custodians to self-storage practices. Additionally, it sheds light on the pivotal role of fiat custodians in the crypto ecosystem, the importance of wallets tailored for substantial transactions, and the growing domain of insurance tailored to mitigate risks associated with digital assets. As we navigate through each segment, we’ll introduce some of the industry’s leading service providers and products, aiming to equip investors with the knowledge to make informed decisions in this rapidly advancing arena.
In summary, the secure storage of Bitcoin and fiat currency is a multifaceted challenge that requires tailored solutions for institutional investors. This article has provided an in-depth look at the various types of custody available, from specialized Bitcoin custodians and self-storage practices to the critical role of fiat custodians in the ecosystem.
By understanding the different revenue streams and fee structures of these intermediaries, investors can better navigate their options. As the digital asset market continues to evolve, staying informed about the latest developments in storage technology and services is essential for safeguarding investments and maximizing returns.
Gift cards continue to gain traction in this digital age. This is owed to their real-time value, which makes them more attractive and viable than any conventional gifts. As such, holding a gift card often comes with the feeling of holding cash that you can use for varying intended purposes. This guide highlights some of the best ways to make the best use of gift cards in 2024.
An Overview Of Gift Cards
Gift cards are prepaid cards of stored value issued by retailers to enable access to products or services. These can be physical cards, e-gifts (digital cards), or gift vouchers, all for an alternative to cash at online stores or stores. These cards often have details like card numbers and codes, as some have expiry dates, which you will provide to unlock their value.
You can find gift cards in different currencies and denominations – a feature that has made gift cards transcend borders. For instance, Amazon gift cards are available in US dollars, UK pounds, euro, Canadian dollars, etc. So this gives you the latitude to choose the preferred currency that enables shopping in your country or region of residence.
Ways To Make The Best Use Of Gift Cards
Redeem Your Gift Card
You can redeem your gift card at any store that supports it for products or services. This is actually the popular way of making the best use of gift cards. Several brands or businesses issue gift cards for customers to use for purchases instead of traditional payment methods such as cash or credit/debit cards.
For instance, you can redeem an Amazon gift card on Amazon, just as you can redeem your Apple gift card on the Apple store. This gives you the convenience and flexibility of purchasing products with gift cards other than your local credit/debit cards that you might not be able to use at the store.
Sell Gift Cards
It is common knowledge that gift card trading is one of the best and fastest ways to make money online. You can sell your gift cards for a better value than redeeming them at their respective stores.
This can be an instance of having a card you don’t want to redeem because it does not interest you. For example, you can sell Steam gift cards for cash if you are not a gaming enthusiast – as you can only redeem the Steam card for gaming content on the Steam store. Therefore, trading your card gives you a better option than leaving it to gather dust inside where you keep it.
However, it is also important to trade your gift card at a reputable platform to get an excellent value for it. Talk of value, Prestmit is the leading digital trading platform that ensures you always have profitable trading with the best gift card rates.
Prestmit supports an extensive catalogue of gift cards, multiple payment options and advanced security features to provide an excellent trading experience.
Select your gift card from the “Gift Card Category” and choose the “Gift Card Type.”
Enter the “Amount” of your gift card.
Upload the image of the gift card or enter the code in the comment section.
Proceed to complete the transaction.
You will receive payment immediately upon the confirmation of your transaction.
Add Card Balance To Amazon Account
You can add the balance on your Visa or Mastercard gift card to your Amazon balance (if you have one). This is through the conversion of the card to an Amazon gift card via Amazon Reload. So this can enable you to shop comfortably on the Amazon store. But you must check and know your gift card balance before using this method.
Conclusion
We can not overemphasize the unlimited possibilities that gift cards bring when you hold one. While you can redeem the cards at respective stores, you can also trade them or, better still, add the card balance to your Amazon account.
However, it is essential to check your gift card balance before using them for your intended purpose.
