CRYPTOCURRENCY TRADING CUSTODIAL SERVICES
Cryptocurrency trading involves speculating on price movements via a trading account, or buying and selling the underlying coins via an exchange.
Cryptocurrency markets are decentralised, which means they are not issued or backed by a central authority such as a government. Instead, they run across a network of computers. However, cryptocurrencies can be bought and sold via exchanges and stored in ‘wallets’ .
Unlike traditional currencies, cryptocurrencies exist only as a shared digital record of ownership, stored on a blockchain. When a user wants to send cryptocurrency units to another user, they send it to that user’s digital wallet. The transaction isn’t considered final until it has been verified and added to the blockchain through a process called mining. This is also how new cryptocurrency tokens are usually created.
Cryptocurrency custody solutions are independent storage and security systems used to hold large quantities of tokens. Custody solutions are one of the latest innovations to come out of the cryptocurrency ecosystem and have been expected to herald the entry of institutional capital into the industry.
The main utility of cryptocurrency custody solutions lies in the safeguarding of cryptocurrency assets. Private keys, which are used to conduct transactions or access crypto holdings, are a complex combination of alphanumerics. They are extremely difficult to remember and can be stolen or hacked. Online wallets are a potential solution but they have also proven susceptible to hacks. The same is true of cryptocurrency exchanges.
Other solutions include storing private keys offline, on paper or a hard disk (or other electronic equipment) that is not connected to the Internet. But losing physical custody (or either the paper or electronic equipment) is a real possibility, and in those cases recovery of the cryptocurrency holdings can be impossible.
stockpickcentral.com steps in to address this risk through our military grade security system. We are a comprehensive cryptocurrency service provider. Institutional and Individual clients can safeguard their private keys at stockpickcentral.com for a fee.