What Is Crypto Custody?
Blockchain technology has introduced new blockchain terms into our lives, and one of them is crypto custody. Crypto custody is a term that is used to describe the protection of assets from theft by having third parties watch over cash, stocks, gold bars, or virtual assets.
With technological developments, the transition to the digital age has been made. For this reason, cryptocurrencies have become the focus of many people. Research has shown that more than 180 million people use the well-known Bitcoin currency.
It is known that there are more than 500 million people in the world who invest in cryptocurrency. In addition, in populous countries such as China and India, it is possible to see usage exceeding 100 million. For this reason, they are the globally preferred digital currencies in the world.
The increasing importance of cryptos proves to us that attention should be paid to some issues. Especially in terms of security, it should be preferred to carry out transactions in a more controlled and orderly manner. Otherwise, certain problems may arise.
For this reason, the importance of crypto custody transactions emerges. Join us in this blog as we analyze the benefits and functioning of crypto custody transactions for you. In this way, you can carry out all your transactions in a much safer way.
What is the benefit of crypto custody?
It is possible to benefit from many advantages with crypto custody transactions. Some of the advantages it offers you are as follows:
- An extra-safe formation thanks to the additional security system.
- Prevention of theft incidents.
- Practical and easy remote management.
- Utilization of software through digital security.
- Benefit from the high-level advantages offered by technology.
- Securing digital assets.
- Personal use only with your own password and key structure.
- Apart from storage, it can also be used as storage.
- Possibilities to use at any time in a short time.
- Benefit from different and special services.
What is the difference between crypto custody and traditional custody?
There are big differences between crypto custody and traditional transactions custody. As it is known, cryptocurrencies are currencies used in a digital environment. Therefore, digital wallets or digital banks are used for crypto custody.
Especially crypto-friendly digital banks such as Cryptobunq offer high-level service in this regard. Thanks to personalized passwords and keys, a digital firewall is created. It is out of the question for other people to access crypto and commit theft.
In traditional storage methods, there are situations seen in the past. In the old period, people used to keep their money in their homes or in some home safes. In fact, the concept of under the pillow has emerged for the money stored under the pillow.
With the emergence of banks, it will be possible to store money in bank accounts. However, for high-level security, it is necessary to physically go to the bank and use bank vault-style methods.
In digital storage, the process is completely digital and software-based. With the privileges offered by the blockchain network, it is more practical and easy to use. It is also one of the advantages seen as much more secure.
In traditional methods, it is also likely to encounter certain limits and restrictions. In crypto transactions, the right to say is entirely the customer or person. Since it is for personal use, freedom and the right to do what you want are much more extensive.
For this reason, it would not be wrong to say that crypto custody methods are much more advantageous than traditional methods.
With all the comparisons we mentioned above, it would be more logical to turn to crypto custody transactions. You can benefit from innovations in line with the digital age.
How do you take self-custody in crypto?
The way to get self-custody in crypto is quite simple. With your own key and password, the process is completed in a simple way. The important point here is related to which digital bank or wallet you use.
The platform you use, security key, and password allow you to complete the process quickly. You can trust CBQ to take self-custody in crypto. As a one-stop shop crypto service provider, CBQ offers custody and wallet solutions.
Is MetaMask a custodian wallet?
MetaMask is one of the most frequently heard concepts as a result of the wide use of cryptocurrencies. The concept of MetaMask is famous for being a cryptocurrency wallet. It is especially known as the wallet that works with the Ethereum blockchain.
It is a wallet with a wolf-shaped emblem that is frequently preferred in NFT purchases and various fields. It is also possible to use MetaMask as a custodian wallet.
MetaMask is one of the expert platforms, such as Cryptobunq for wallet as a service. One of the differences is that MetaMask is available as a wallet and is focused on Ethereum. Therefore, it does not have crypto-friendly digital bank features, unlike CBQ.
More precisely, it acts as an intermediary wallet that allows interaction with Ethereum. Therefore, it is preferred in custody wallet transactions.
Apart from its encrypted structure, the presence of secret keys indicates that it has high-level technology. It occupies a significant position in the custodian wallet, which is the preferred wallet for Ethereum users.
MetaMask, which attracts the attention of Ethereum investors, is one of the almost mandatory wallet types for the Ethereum blockchain. You can make reliable Ethereum transactions with Cryptobunq and MetaMask.
What is the difference between third-party custody and crypto custody?
Cryptocurrency is divided into certain categories within itself. These categories are generally available in two types. The first one covers crypto custody transactions personally. The second method is known as the third-party custody method.
In self-custody transactions, as the name suggests, the only control is in the person himself or herself. While cryptos are stored in the desired location, the only control is in one person. In this way, no one except that person can reach or access the crypto money.
To give an example of this situation, let's imagine that you have a personal bank safe. Only you will have the key and password to your bank vault. The same mentality works in self-custody in the crypto process.
In this way, you can manage and secure your crypto assets. Additionally, only you can make transactions whenever you want. Therefore, it won't be possible to encounter any theft or fraud. Usually, crypto custody is done through orders placed on wallets or with your digital banks.
Therefore, with the help of crypto-friendly digital banks such as Cryptobunq, you can reliably store your crypto assets with the help of private keys.
On the other hand, in third-party custody transactions, there is a different system than personal storage. Here, a third party comes into play. It is generally preferred in company accounts or digital account controls with a manager.
The administrator or a third party knows the key in this type of transaction. He or she keeps the key or password and is obliged to give it back to you when you ask for it. In simpler terms, it reflects the fact that two people own the account and are connected to each other.
Suppose a map is divided into two parts, and one of the parts is given to someone else to be taken back. This would be similar to a centralized exchange, as in this example. This is why trust is one of the most important aspects of these transactions.
If you want to benefit from crypto custody solutions, CBQ is here for you. We offer a wide range of solutions for your individual or business needs. Contact us and become our partner for your crypto service needs. Reliable and secure transactions are possible with Cryptobunq!
|crypto, knowledgehub, stablecoins
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