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Crypto vaults and protecting your assets

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Reading Time: 3 minutes

‘Never put all your eggs in one basket.’

Most people with cash don’t keep all of it in one account, preferring to keep some of it in a current account and the rest locked up in a savings account. Getting your money to work better for you is one reason, but just as importantly, it is all about the added security of knowing your assets are locked up somewhere safe.

We’ve all heard and read about crypto scams and people losing money, and security is a big concern for investors. And that’s the beauty of crypto vaults – they offer you an extra layer of security.

Read on to find out more.

WHAT ARE CRYPTO VAULTS?

A crypto vault is simply a safer wallet you can use for all your cryptocurrency transactions, adding extra layers of security to your assets. For example, you can add a co-signatory to the vault’s withdrawal authorization list. This guarantees that each transaction undergoes an additional degree of verification, establishing a time limit for the approval of each withdrawal, as well as a mandatory waiting period before the funds are released.

HOW CRYPTO VAULTS WORK

Crypto vaults are a secure place to store cryptocurrency, but withdrawals take longer and need personal authorization.

Owners of crypto vaults, unlike traditional cryptocurrency wallets, are notified of pending transactions and must grant permission before any payments are made, and you can add more signatures to the approval procedure for even greater security. Individual vaults can potentially have extra restrictions imposed on them, such as transaction limits.

The waiting period can span several days, giving you the option to cancel a transaction. Depending on the supplier, multiple cryptocurrencies such as Bitcoin, Ethereum, and stablecoins may be held in crypto vaults. Vaults are an excellent option for traders who do not want fast access to their bitcoin or altcoins for lengthy periods of time, preventing instant withdrawals.

HOW TO USE CRYPTO VAULTS

You can save a lot of time and effort if you already know how to find the best crypto to invest in before you put it in the vault. Simply provide the sender with your vault’s unique address or move funds from your wallet to the vault itself. However, the process of transferring assets from a vault is intended to be more time-consuming and difficult. A confirmation email for the approval will be sent to both your main and secondary email addresses once you have requested a withdrawal. After approval, the withdrawal process takes a further 48 hours, giving the vault owner an extra security “firebreak,” during which they can cancel the withdrawal if they change their mind.

HOW ARE CRYPTO VAULTS DIFFERENT?

Crypto vaults differ from other conventional crypto storage techniques in many subtle ways, the most notable being the withdrawal delay and approval procedure.

VAULT VS. BITCOIN            

Crypto vaults are currency agnostic, unlike Bitcoin vault, which is an upgraded cryptocurrency that employs a 3-key security mechanism and allows withdrawals to be reversed within 24 hours. It’s important to remember that not all vaults are compatible with every cryptocurrency; some are dedicated to specific currencies, while others accept all cryptocurrencies.

VAULT VS. HOT WALLET

A crypto vault is an offline storage system that protects your money from hackers. This is a significant improvement over using a hot wallet, which leaves your private keys open to theft, as hackers can easily get them. A typical practice and safer option among investors is to store a small amount of capital in a hot wallet or exchange while moving the bulk of their holdings to a cold wallet or vault.

VAULT VS. COLD WALLET

Vaults provide the same level of security as cold wallets due to their lack of network connectivity. Vaults, on the other hand, don’t need a private key to get access, unlike hard wallets, so losing your private key won’t result in the complete loss of your funds.

WRAPPING UP CRYPTO VAULTS

When compared to standard cryptocurrency wallets, crypto vaults give an extra degree of protection and authentication, making them ideal for storing Bitcoin and altcoins. Although it ensures the security of your cryptocurrency investment, it makes the asset more complex to get. 

It’s possible that putting some money in a crypto wallet and the rest in a vault is the best method to protect your wealth and yet have quick access to it when you need it.

 MAXIMIZING YOUR RETURN ON YOUR CRYPTOCURRENCY

With companies such as Bolide.fi, you can start with any amount and invest in a vast range of staking and farming options while choosing a risk strategy that best suits your risk appetite. Even better, there’s no lock-up period, and you can get APYs of up to 30%!

Here are some of the benefits of investing with Bolide:

  • Low-risk, market-leading yields of up to 30% APY
  • Earn an extra 20% staking your BLID tokens and enjoy 11% APY on farming
  • Start investing with any amount
  • Hands-off, passive automated investments using your stablecoins
  • No lock-up period, access your funds and profits instantly
  • No withdrawal limitations

Starting your yield farming and staking journey is easy with platforms like Bolide. Simply visit www.bolide.fi, connect your crypto wallet, deposit either $USDT / $USDC / $DAI or $BUSD, and you’re good to go.

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For more information on generating a passive income on your cryptocurrency investments, visit Bolide.fi