Store & Secure Cryptocurrency

As already described, cryptocurrency is a new type of money, and like any other money, your top priority is keeping it safe. With the money you are familiar with there are a couple of ways of looking after it.

1. Look after it yourself 
2. Trust someone else to look after it on your behalf

Option 1 might mean a safe or vault, with a key or code that only you hold. Option 2 – allowing someone else to look after it – most likely means using a bank, who you trust to store it, but gives you convenient access via an account, and maybe an App.

With cryptocurrency you have the same two options; you can assume full responsibility yourself, or trust someone else to look after it. The term you’ll see used for this is ‘custody’. So the two options become:

1. Look after crypto yourself – Use a non-custodial crypto version of a safe
2. Trust someone else to look after your crypto – Use a custodial service, crypto version of a bank

At this point it is important to understand exactly what is being custodied (looked after) as crypto is entirely digital, but its monetary units don’t exist as files on your file or laptop.