The post SEC Issues Bitcoin Custody Guide Highlighting Risks and Best Practices appeared on BitcoinEthereumNews.com.

The SEC’s crypto custody guide provides investors with essential best practices for securing digital assets, covering self-custody, third-party options, and wallet types like hot and cold storage to mitigate risks such as hacking and permanent loss. Self-custody empowers users to control their own assets but requires strong security measures to avoid key loss. Third-party custodians offer convenience but demand scrutiny of policies on asset rehypothecation and segregation. Hot wallets enable quick access yet heighten cyber threats, while cold wallets reduce online risks at the cost of potential physical loss, per SEC data. SEC crypto custody guide educates on wallet best practices and risks for secure storage. Discover self-custody tips, hot vs. cold wallets, and regulatory shifts. Stay informed and protect your assets today—read now for expert insights. What is the SEC Crypto Custody Guide? The SEC crypto custody guide is an investor bulletin released by the United States Securities and Exchange Commission on Friday, offering a comprehensive overview of best practices for managing digital asset storage. It details various custody methods, including self-custody where individuals hold their own private keys, and third-party arrangements where service providers manage assets. The guide emphasizes understanding risks and protections to help investors make informed decisions in the evolving cryptocurrency landscape. How Do Hot and Cold Wallets Differ in Crypto Custody? The SEC’s guide breaks down wallet types to highlight their trade-offs. Hot wallets, connected to the internet for easy transactions, face elevated risks from hacking and cybersecurity breaches, as they are accessible online. In contrast, cold wallets store assets offline, providing stronger protection against digital threats but introducing challenges like physical damage, theft, or loss of access if private keys are misplaced. According to the bulletin, investors should weigh these factors based on their needs, with data showing that a significant portion of Bitcoin…

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Filed under: News - @ December 13, 2025 8:21 pm