Why did we decide to keep the funds in a cold wallet?

Why did we decide to keep the funds in a cold wallet?

CryptoCurrency Press Release

29th November 20195:10 pm

 

Dear Friends,

If you’re reading this, you’re probably aware that over this year many exchanges were hacked and lost a lot of funds (Binance, Bitfinex, Upbit, Bithumb, DragonEx etc).

The recent Upbit hack is a stark reminder of the danger of storing your crypto on an exchange that not has insurance for the user’s funds.

This scenario is different from ParamountDax: the extent of damage is limited since the majority of the user tokens are stored in cold wallet storage.

Insurance till 100 M against Wallet Hacking (service by our Wallet Provider).

Keeping a majority of crypto assets in cold storage means that only funds that are needed immediately to process withdrawals are made available to the exchange systems.

The best way of storing cryptocurrencies

At this moment, the security of funds has become a major concern of the community. Although people wanted to carry out their economic activity in cryptocurrency, the question of whether their money was safe disturbed them.

Keeping all funds on a hot wallet is very high risk due to its uncertain safety and using a cold wallet only can be really inconvenient. Good practice for a cryptocurrency exchange is to never store too many funds on a hot wallet — it protects the customers and exchange itself.

Cold Wallets:

We are living in the crypto Wild West and not enough people are talking about how we can establish some kind of order and ensure that people don’t fall victim to the hackers and scammers who, to this point, have quite literally been given a free ride.

ParamountDax offers the highest levels of security available while simultaneously solving the issue of cold storage portability.

The cold Wallet resolves the problem of storing large cryptocurrency amount and also prevent network-based thefts to a great extent. Cold wallets are not connected to the internet.

Ensuring the security of funds is our top priority. We are proud of our security measures and we test, evaluate and improve these on a continuous basis.

Moving forward, those crypto exchanges that will survive in the future will be those that are fully compliant and take security seriously.

Crypto is the future, of that there can be no doubt, but we must get serious about security and the buck falls upon those custodians of cryptocurrency transactions, the exchanges.

In Summary, regulation is important, exchanges must adopt best practices and negligence can never be tolerated. We welcome discussions on this topic and would love to hear some perspectives from our community on how we can reduce the risks for traders now and in the future.

ParamountDax makes the world of cryptocurrencies a safer place to invest.

Good luck! And see you soon!

Website: https://paramountdax.io/

View MVP: https://staging.paramountdax.com

And here’s how to get involved with the ParamountDax community:

Telegram: https://t.me/joinchat/LNehJxUX9sVoZabNrnaEZA

Twitter: https://twitter.com/ParamountDax

Facebook: https://www.facebook.com/Paramountdax-2024636494500768

Bitcointalk: https://bitcointalk.org/index.php?topic=5137789.0

Reddit: https://www.reddit.com/r/ParamountDax

 

THE AUTHOR
Andrey Romanov
Andrey Romanov