What is Cold Storage? And how does CoinSmart's Cold Storage work?

What is Cold Storage?

Cold Storage is a cluster of cryptocurrency wallets held away from internet access. To maximize the security of funds and prevent the possibility of hacking, this is an essential practice for any exchange.

CoinSmart has employed an industry-leading cold storage provider, BitGo, to store the cryptocurrency entering our exchange. We are required to hold most of the assets in cold storage, you can review this in point 61 from our Terms & Conditions which you can find at the link here

Who is BitGo?

BitGo is the industry leader in the storage of digital assets, specifically cryptocurrencies. They have many large clients, like The Royal Mint, along with several other cryptocurrency exchanges. 

BitGo wallets are insured by Lloyd's of London for $100 million, in the highly unlikely event of a breach. This level of protection is unparalleled in the industry and is why CoinSmart has selected BitGo to protect our digital funds.

What are some benefits of CoinSmart using BitGo for its cold storage services?

BitGo provides CoinSmart with the most secure cold storage wallets in the industry. These are the highest standard of cold storage security you can find in this space.

Additional benefits of BitGo wallets include:

1. Multi-signature access to the wallets, so in the event of emergencies, the wallets can be accessed by multiple sources.

2. Rigorous security checks and penetration tests.

3. Additional risk controls, such as whitelisting wallet addresses and customized transactional limits.