Where and how to store cryptocurrencies?
Incidents of crypto-assetDigital asset based on cryptography principles. Peer to peer traded, on a decentralized network, thanks to Distributed Ledger Technologies such as blockchain. The user is integrated into storage and transaction theft can occur as a result of online hacking. To secure your digital assets, you have several options. Existing solutions are called wallets.
A cryptocurrency walletPrice variation of an asset on a given period. groups together the addresses of your various digital assets. It serves as access to your funds. To receive cryptocurrencies from a third party, you use a public key, which you send to the person wishing to send you cryptocurrencies. However, only the holder of the private keyOne of the two components of a crypto wallet, it gives the digital assets’ ownership and must stay
confidential. can access and retrieve the assets linked to an address. The security of your cryptocurrencies therefore depends on your exclusive possession of this private key.
Internet-connected wallets, known as hot wallets, are suitable for simplified transaction management. These online wallets make it easier to manage transactions, but it’s crucial to understand that your private key, needed to access your funds, is stored online, making your funds more vulnerable to computer attacks. Online wallets can be applications (software wallet) or accessed via a web browser (online wallets).
Cold wallets, on the other hand, offer secure protection against cyber-attacks, as they keep private keys out of the reach of hackers. You can print out your private keys and keep them on paper, or use a hardware wallet, which is a storage device similar to an external hard drive or USB key. However, they require special storage to prevent theft, damage or loss.
Cryptocurrencies or digital currencies are terms commonly used in the crypto ecosystem. However, the terminology favored by regulators (ACPR and AMF) is crypto-assets or digital assets. This distinction arises because, although often referred to as cryptocurrencies, these assets do not qualify as currencies in the legal sense. They are virtual resources based on blockchainA blockchain is a type of distributed ledger technology. It is a huge database formed by blocks,cryptographically linked to each other, containing information such as transactions. These blocks are addedfollowing technology, whose value is determined solely by supply and demand.
None of the information contained in this FAQ constitutes investment advice, tax advice, legal advice, or any other type of advice, nor does it serve as an invitation to engage in any form of financial transaction.
Investing in digital assets carries risks and may not be suitable for all investors. It is the responsibility of investors to educate themselves about the risks associated with different digital assets. In particular, it is noted that digital assets can exhibit significant volatilityPrice variation of an asset on a given period., and investments in digital assets involve a risk of capital loss. Accordingly, it is important to remember that the past performance of digital assets, as might be indicated on Banque Delubac & Cie’s website or in documents provided to investors, is not indicative of future performance. Investors should familiarize themselves with the technologies underlying each digital asset and their associated risks, including vulnerabilities, defects, hacks, errors, protocol failures, or attacks on the protocol. Banque Delubac & Cie cannot be held liable for any misunderstanding of the risks associated with digital assets or for any losses investors may incur due to errors in wallet addresses attributable to the investor.
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