✍️ [Analysis] Busting myths about cryptocurrency custody - Brian Armstrong

BlockworksFeb 28, 2019 ⋅ 1 min read

Coinbase's CEO Brian Armstrong addresses four common misconceptions relating to cryptocurrency custody:

Cold storage of keys does not mean foregoing trading. Certain platforms like Coinbase Custody allow for off-line trading.
Cold storage funds can still participate on the network. Tezos, for example, allows interest accrual on top of stored funds.
Cold storage does not rely on a single authorized user. Almost all systems use multiple redundancies and take into account everything from natural disasters to computer failure.
Hardware security modules, or HSMs, are not as good as cold storage. While useful, cold storage adds a physical component to security that HSMs do not have. In the end, the best path is often the middle: a mixed system of cold and hot wallets that protect funds but allow for quick movements of some funds.

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