The Cryptocurrency revolution is the democratization of the financial industry. It’s provided access to financial services that have otherwise been difficult to access. The ability to exchange assets in a decentralized fashion untethers many investors from traditional banking limitations. While these benefits are clear, there is an increased security risk when self-managing your digital assets.
In this article, you will learn about how iTrustCapital secures your digital assets and why it is the best-in-class.
If you have been in Crypto for any amount of time, chances are you have heard about exchanges or digital wallets being hacked. The reason crypto investors can have their funds stolen on these types of platforms is typically because they are held in an online digital wallet - aka a “hot wallet.”
Hot wallets are digital wallets that remain connected to the internet at all times. While this may provide some convenience, it also provides a roadway for hackers to access your funds.
To ensure that these types of events do not happen to our clients, iTrustCapital utilizes cold storage from industry-leading providers - Coinbase Custody and Fireblocks.
It is important to note that Coinbase Custody is not the same as Coinbase the exchange. Funds held on Coinbase the exchange is held in a hot wallet - meaning the funds are held online. On the other hand, Coinbase Custody is an industry-leading cold-storage provider. This means that digital assets are held offline and are inaccessible to any online attack.
Fireblocks is an industry leading platform for providing a secure infrastructure for moving, storing, and issuing digital assets. Fireblocks provides hyper-secure multi-party computation technology that removes the single point of failure of private-keys for signing cryptocurrency transactions.
Furthermore, Coinbase Custody provides commercial crime insurance of $320 million, whereas Fireblocks provides a similar $30M policy. To read more about our relationship with Coinbase Custody please click here. To learn more about Fireblocks, please click here.
Since all of our client's digital assets are held in cold storage, iTrustCapital does not store any cryptocurrency assets on its platform. Meaning, if a hacker managed to gain access to our platform, the only thing that they would get is a whole lot of nothing.
If the worst-case scenario occurs and a hacker gains access to an account, the most they could do is execute an unauthorized trade. They will not be able to liquidate the account.
For the best preventative measures, it is crucial to utilize two-factor authentication and implement best practices for securing your personal information on platforms other than iTrustCapital.
iTrustCapital takes extensive measures during both onboarding and offboarding to safeguard client accounts. For example, a while ago we implemented an added layer of authentication to protect our customers from unauthorized distributions. Clients moving large amounts of funds off of the iTrustCapital platform are required to confirm their identity over a video conference call. This puts our clients at ease knowing that accessing their funds is a multi-step process with multiple fail-safes.
The most common way a crypto investor has their funds stolen on a “hot wallet” is through the poor management of login credentials. This often happens due to falling victim to a phishing attack, or not using best practices for securing sensitive information on other platforms (i.e. email, password managers, social media, etc.).
This is why iTrustCapital offers clients the option of implementing two-factor authentication. This dramatically limits the risk of unauthorized access to your account. If a phishing attack compromises your login credentials, the hacker would also need access to your other form of authentication - dramatically mitigating risk.
iTrustCapital's mission is to provide an unparalleled experience for our customers. Therefore, we have built an industry-leading reputation for our customer service. Our customer support team is available on multiple channels and is available to answer any questions or concerns you may have regarding our security measures.
Buy and Sell Crypto in your IRA anytime, anywhere.