Best Practices for Crypto Storage

Germany's Federal Office for Information Security, BSI, highlighted the importance of secure crypto storage in a recent LinkedIn post. They recommended using hardware wallets as the safest option for storing private keys. The post discussed the risks of exchange-linked wallets, which are vulnerable to hacks due to their constant internet connection. Self-custodial wallets on computers or smartphones were also deemed safer but still had security gaps. The BSI emphasized the need for backups of seed phrases and private keys stored in a secure location. Recent data showed a rise in crypto hacks, with private key exploits accounting for a significant portion of the stolen funds. Notable incidents included the hack of an Indian crypto exchange and an exploit on the Casper Network. Overall, the post underscored the importance of prioritizing security measures in crypto storage practices.