The Best Storage Is Cold Storage (So Why Aren’t More Institutions Using It?)

TL;DR

• Here’s a sentence we couldn’t have imagined ourselves saying/understanding/getting excited about even just a few years ago: Bitpanda just launched a crypto platform with cold storage.

• Cold storage = an offline device where you can hold your crypto (no internet connection, means it’s way harder to hack). 

• But here’s the thing…Having to connect a device IRL in order to transfer funds is slow, hard to automate, and (we’d guess) quite labor intensive.

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Gosh, some of these crypto terms we LOVE. 

It’s easy to get complacent and forget how ridiculous this space can be.

For example, here’s a sentence we couldn’t have imagined ourselves saying/understanding/getting excited about even just a few years ago:

Bitpanda just launched a crypto platform with cold storage.

Here’s what that means/why it’s important…

First up: cold storage = an offline device where you can hold your crypto (no internet connection, means it’s way harder to hack). 

But here’s the thing…

Having to connect a device IRL in order to transfer funds is slow, hard to automate, and (we’d guess) quite labor intensive.

Which means, even though it’s an ultra-secure method of storing crypto, there aren’t a ton of large institutions offering cold storage to their clients.

It’s a big step forward to see companies like Bitpanda figure out how to offer cold storage, while still allowing their clients to sell their crypto at the drop of a hat.

(Cause the ‘big dogs’ of the investment world aren’t going to be comfortable storing their billions on a USB stick in their desk drawer).