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Why we Keep 100% of Customer Crypto Assets in Cold Wallet Storage
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At Liquid, we keep 100% of our customers' cryptocurrency assets in cold wallet storage.
This is a no-brainer for us.
The amount of theft that goes on in cryptocurrency is unfathomable. According to cryptoaware, a staggering USD2.8 billion worth of cryptocurrency has been lost to hacks and scams since 2011.
Perhaps even more unsettling is the fact that 63% of this was lost in 2018.
That means USD1.76 billion worth of crypto was stolen in 2018 alone, at an astonishing rate of USD70 a second.
Clearly there are issues in the crypto space that need to be addressed.
Security in cryptocurrency should be top of every exchange's list. If your exchange doesn't do all it can to protect your funds, maybe it's time to do your business elsewhere.
Scams are ever-present and substantially harmful for future growth of the crypto economy. New users face a minefield of security issues while existing traders and holders continue to be exploited.
There is no easy solution, but there are preventative measures that can be taken to keep customer's out of harm's way.
Liquid is very clear about security: we must protect our users.
Crypto security in our DNA
We’re extremely proud of our track record and the security measures we have in place on Liquid.
We are one of the few crypto exchanges in the world to employ 100% cold wallet storage for customer assets, so your funds are locked safely away from any malicious activity.
All customer funds are kept offline – the safest way to store crypto.
Before the launch of Liquid, we had two exchanges, Qryptos and Quoinex. Each platform was built from the ground up with security at the core.
Cold wallet storage was one of our primary features. We chose to continue with this security measure with Liquid to provide our users with ultimate peace of mind.
Currently, withdrawals on Liquid are processed manually and require multiple sign-offs from approved members of staff. As a regulated, audited exchange, we must do all we can to keep funds secure.
If there’s a downside to cold wallet storage, it’s that our withdrawals are not, at present, processed instantly – but that will change.
We do not want to end up as the latest crypto exchange to fall victim to hackers.
We will continue to work on our security features on Liquid and will not compromise on user safety.
As cryptocurrency continues to grow, regulation will become increasingly important. In order to be compliant, a high level of security will always be paramount.
Liquid will continue to be one step ahead in this regard.