Cryptocurrency Investment O Nooooooo, Hackers are hatching malicious plans, conspiracies to acquire your hard-earned digital currency. Don’t worry we at Bank of Hodlers are equipped with the most advanced anti-theft insurance system.
Nearly 438 bitcoins worth over $2.7M were stolen from a leading exchange firm in India in what is being called the biggest cryptocurrency theft in the country so far.
The exchange, which has over two lakh users across the country, found that all the bitcoins that were stored offline had vanished. It was later discovered that the ‘private keys’ — the password that is kept by the company and is stored offline — were leaked online, leading to the hack.
Read More: How to pick the perfect Bitcoin Wallet?
The company tried to trace the hackers but found that all the data logs of the affected wallets had been erased, leaving no trails of where the bitcoins were transferred. The website of the company has since then remained shut. (Source EconomicTimes)
Police in China have arrested three men suspected of stealing approximately 600 million yuan (over $87 million) worth of cryptocurrency through hacking. The presumed criminals targeted personal and corporate computers, local media reported. (Source Bitcoin.com)
We at the Bank of Hodlers are here to overcome these challenges and safeguard your digital currency with the help of an authentic and advanced hack proof blockchain technology.
Bank of Hodlers offers an insurance instrument against theft of coins. There would be an annual insurance premium that would cover cryptocurrency holders against theft of coins from their respective exchange.
We treat your cryptocurrencies as a separate asset class and offer services to ensure the technology stays relevant. This will remove the need for network effects and government authorization. Our services go beyond the security and efficiency of a traditional bank account:
- The ability to keep their money in a safe place – a store of value.
- An easy way to spend their money conveniently through a credit card – backed by their crypto assets. A clean and efficient overdraft system.
- The ability for users to earn interest or borrow, without liquidating their crypto holdings.
- Offer an insurance instrument in case of a hack in their exchange.
- This gives every holder the ability to completely bank on blockchain today.
Our Insurance Mechanism
Yes we assure you
Once we verify the total amount of coins in the Bank of Hodlers wallet, the user will start paying monthly/yearly insurance fee for their coins.
We will audit the security of the exchanges on a regular basis (we can facilitate the insurance of the coins stored in an exchange that gives us the REST API access) to place them in risk brackets which would, in turn, determine their insurance fee.
Once the insurance is purchased, we would ask the user to share an alternate (and safe) wallet address for us to deposit the claimed cryptocurrencies in case of theft.
Get Insured Against Crypto Theft
We offer protection against cryptocurrency theft, willing to overcome the daunting challenge.
Insight into our insurance system:
- Get the flexibility of a hot wallet with the security of a cold one.
- Get your cryptocurrency back within 24 hours in case of theft.
- Keep your coins in your exchange for easy buying and selling.
Your Money, Your Crypto Investment Under Our Protection Secured, Swift, Decoupled from governments, hackers and banks.
Securing your Cryptocurrency
Cryptocurrency investment involves taking risks associated with thefts, hacking, etc. as digital assets are vulnerable to these.
There is no government insurance programme to refund your money if the exchange that holds your assets becomes prey to crypto theft. For certain types of asset storage, a lost password is unrecoverable – you can permanently lose access to your funds. The damage is irreversible.
It is far better to adopt and follow the precautionary and preventive methods to safeguard digital currency.
These wallets can be used to store as well as send and receive your digital currency.
You are given a private and confidential key. Without this key, no one can touch the currency.
A hot wallet is an online wallet that stores your cryptocurrency on an internet-connected source. That source could be a wallet with an online exchange where you buy and sell crypto.
Hot wallets are easier to set up, access and accept more tokens. But, hot wallets are also more susceptible to hackers, possible regulation, and other technical vulnerabilities.
If your device is lost, hacked, stolen, or if its hard drive fails, your cryptocurrency could be gone forever. The exchange itself is vulnerable to hacking.
In an uncertain regulatory environment of crypto, governments can potentially shut down crypto exchanges.
- Quick access to your cryptocurrency as most of the hot wallets are accessible through your smartphone.
- Hot wallets are user-friendly.
Cold storage refers to keeping your cryptocurrency offline, an option that trades convenience for security. You only plug them into your computer’s USB port when you need to move your crypto.
Cold storage is more secure, but they don’t accept as many cryptocurrencies as most hot wallets. Cold storage devices (Trezor, Ledger) also cost close to $80 as compared to hot wallets that are free.
- It is the most secured wallet.
- It is completely offline, includes USB drives, hardware and paper wallets.
- Hardware wallets are considered as the most secure form of cold storage because they store private keys within the device, and even the user can’t see them.
- It provides a greater level of safety for the users.
Read More: Hot Wallets vs. Cold Wallets
Paper wallets are easy to use and provide a high level of security, they are a piece of paper with both the public and private keys for your cryptocurrency printed on them, accompanied by a QR code. It’s a physical copy or printout of your public and private keys. It can also refer to a piece of software that is used to securely generate a pair of keys which are then printed.
In short, cold storage or paper wallets are where you want to keep the bulk of your crypto. Cold or paper storage is like a savings account with specific stipulations, conditions, or limitations. No one can help you regain access to it if you lose your PIN or password.
If you want to withdraw or spend currency, all you need to do is transfer funds from your paper wallet to your hot wallet. This process, often referred to as ‘sweeping,’ can either be done manually by entering your private keys or by scanning the QR code on the paper wallet.
Guide to Securing Your Cryptocurrency
- To keep your cryptocurrency safe, you should never give anyone your private key.
- Always enable two-factor authentication. It is the best practice to keep your crypto safe.
- Avoid storing a digital image of your paper wallet on your smartphone or computer.
Since transactions are irreversible, erroneously typing or copying an address results in sending cryptocurrency to others. It is advisable to send a small, test transaction first before moving the rest of your assets.
- Backup your seed recovery phrase and PIN that you do not store online, on your hard drive, in the cloud, or on any internet-connected device. Your seed recovery phrase, allows you to recover your cryptocurrency even if your hardware wallet is lost, stolen, or damaged or if the PIN is forgotten.
- A strong password to encrypt your wallet is a must.
- Use multi-signature security to help keep your coins safe.
About Bank Of Hodlers
Bank of Hodlers is building a customer-centric bank on the blockchain, by providing financial services like cryptocurrency-backed loans and cryptocurrency-backed cards.
We have recently launched our asset-backed lending product where you can earn interest on your BTC, ETH, TUSD and DAI. You also have the option to borrow DAI against Ethereum. You can sign up to the platform by clicking here: app.bankofhodlers.com/register.
Senior Investment Banker