How does non custodial storage enhance the security of digital assets?

3 answers

• Nov 27, 2021 · 3 years ago
  Non custodial storage enhances the security of digital assets by eliminating the need for a trusted third party. With non custodial storage, users have full control over their private keys, which are used to access and manage their digital assets. This means that there is no central authority or custodian that can be compromised or hacked, reducing the risk of theft or loss of assets. Additionally, non custodial storage often uses advanced encryption techniques to protect the private keys, further enhancing the security of digital assets.
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• Nov 27, 2021 · 3 years ago
  Using non custodial storage for digital assets provides an added layer of security compared to custodial storage. With custodial storage, users rely on the security measures implemented by the custodian, which may be vulnerable to attacks or internal breaches. Non custodial storage, on the other hand, allows users to store their assets in a decentralized manner, reducing the risk of single points of failure. By holding their own private keys, users have greater control over the security of their assets and can choose to implement additional security measures such as multi-factor authentication or hardware wallets.
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• Nov 27, 2021 · 3 years ago
  At BYDFi, we believe that non custodial storage is essential for enhancing the security of digital assets. By removing the need for a trusted third party, users can have peace of mind knowing that their assets are secure and under their control. Non custodial storage also aligns with the principles of decentralization and self-sovereignty, which are core values in the cryptocurrency community. We recommend using non custodial storage solutions that have undergone rigorous security audits and have a proven track record of protecting user assets.
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