If you’re looking at ways to keep your crypto within your self managed super fund safe in uncertain times or after you have decided to invest money into crypto, then there are a number of ways that you can do this.
We take a look at ways to keep your crypto safe when you have a crypto SMSF.
The first thing you should do is ensure that you have two factor identification on which stands for 2FA. This will prevent any hacking attempts. A common one is Google Authenticator.
Secondly, there are different ways to store your cryptocurrency offline on a device similar to a USB stick called a hardware wallet or hard wallet.
Using a hardware wallet like Trezor or Ledger Nano S e these wallets help you keep your crypto safe on offline storage devices, they also come with added features like cold storage, purse key generation and private key generation.
Then there are crypto custodians like Anchorage, BitGo and Coinbase Custody who are financial services organisations that store your cryptocurrency for you. Think of it like a vault in a bank. However, they will most likely place this information on their own servers which means there is the potential for them to be hacked as well.
Lastly, choose a reputable crypto exchange platform. Before choosing any exchange, you should perform thorough research to find a trustworthy and reliable one. A good exchange should have robust security protocols, have user-friendly application interface and be easy to use. It should also provide fast transaction confirmation time so that your coins can be credited to your account quickly. In Australia some of the largest and more reputable include Digital Surge, Coinspot and Zipmex.
Remember this is not financial advise merely just our view of how a crypto investor can take steps to be safer with their crypto investment. If you are interested in taking the next step with a Self managed super fund for crypto investing feel free to contact us