SEC releases simple guide for retail investors on safe crypto-asset custody
The U.S. Securities and Exchange Commission (SEC) has issued practical advice aimed at novice investors on how to properly and securely store cryptocurrency. This guidance is crucial due to the unique nature of crypto wallets and the investor's responsibility for private keys.
Source Investor
The guide explains that cryptocurrencies themselves reside on the blockchain, while wallets serve as access via private keys which must be securely stored—loss of keys results in loss of funds. It outlines advantages and risks of cold and hot wallets, the critical importance of the seed phrase, and considerations around custodial services. The emphasis is on personal responsibility, basic cyber hygiene, and understanding fees.
Following these recommendations helps users avoid common mistakes and risks, fostering a safer environment for crypto investment.
