The use of cryptocurrencies is growing and diversifying. Once the open secret of a select group of tech-savvy users, many are now being drawn to the transactional freedom of BTC, ETH and a host of other altcoins and tokens. Cryptocurrencies are typically associated with the (decentralized) movement of high volumes and high values of transactions, making it an attractive target for attackers. Work is being done to secure it against unique vulnerabilities like crypto clipping, but questions are still raised about how to securely store this digital value to prevent unauthorized access. The three main ways to store cryptocurrency – exchanges, hot wallets and cold wallets – are secured with a private key, a string of letters and numbers (like a password) which allows a user to access and manage their cryptocurrency funds. Most will be aware that since hot wallets and exchanges are connected to the internet and the custody of the private key is managed by the exchange, they’re more susceptible to unauthorized access and cyber-attacks. Hot wallets stay connected to the internet but are self-custodial so only the owner possesses the private key. Cold wallets are generally considered the most secure of these options as they’re isolated from the internet and self-custodial. But what happens if someone loses or forgets their private key? Regaining access is near impossible. Or worse, what if their credentials become compromised through the likes of phishing scams and data hacks?
Full story : Can biometrics strengthen cryptocurrency storage?