The SEC has released guidance on cryptocurrency wallets
The U.S. Securities and Exchange Commission (SEC) has issued a brief guide for retail investors on how to safely store cryptocurrencies:
- private keys and seed phrases must not be shared with third parties;
- losing a private key means complete loss of access to funds;
- hot wallets are convenient but more vulnerable to hacks;
- cold wallets are safer but require careful physical storage;
- when using custodial services, it is important to understand the risks of hacking and bankruptcy;
- regulations and insurance do not guarantee a return of funds;
- it is necessary to use strong passwords and two-factor authentication;
- one should avoid phishing sites and not disclose the amount of their crypto assets.
