How Do Security-First Models Drive Adoption?

Takeaways: 

  • Cybersecurity threats are holding the crypto economy back 
  • Insurance and proactively working with regulators can help tackle the issue 
  • Nexo’s custodial wallet offers a secure way to explore crypto  

Chasing airdrops, yield farming, and finding rare NFTs are as much about your creative freedom as they are about your financial one. Interacting with Web3 applications is exciting and brings out the explorers in us. Once you install a software wallet and move crypto to your preferred network through a cross-chain bridge you are ready to set sail. If you play the game right, the smart contracts you interact with will be audited and will have a solid track record. However, they may still contain vulnerabilities, as we saw with the recent multi-million Solana and Nomad hacks.  

Staying safe with an insured custodial wallet

Security breaches aren’t unique to crypto, and rushing to the exit is not the solution. Every big hack sends all the newcomers that have taken the responsibility of managing their private keys into panic mode. To accelerate adoption, we need institutions that offer safe and insured wallets to their clients, tackle cybersecurity threats by engaging proactively with regulatory decision-makers and invest in projects that build a safer crypto economy.  

Nexo is a digital assets institution that fits the bill on all three and has a strong history of protecting its clients’ funds. Through the years, Nexo has worked towards building a secure environment. This has paid off in the current market, where many crypto lenders have found difficulties. Part of Nexo’s security aspects include: 

  • Insurance- Recently, Nexo has raised the total insurance on custodial assets from $375M to $775M. This is as high as it gets in terms of insurance coverage offered on a custodial wallet.  
  • Real-time Audit- Nexo is the first crypto lender to have a third party real-time reserves attestation. The audit is conducted by Armanino LLP – one of the leading accounting firms in the US whose clients include Uber and DoorDash. It shows that the company has the assets to meet client obligations at all times.  

With Nexo, you manage all your assets from a single wallet without actually keeping them in one place. Since Nexo itself is not a custodian, it ensures top-tier custody for all assets on the platform through partnerships with BitGo, Ledger Vault, Bakkt, and Fireblocks. The Nexo Wallet doesn’t help you with storage only – on the mobile app or web platform, you can buy crypto, exchange, earn, borrow against your assets, and order a crypto card. 

Explore but do it smart 

Financial and creative freedom are core ideas of the crypto space. To make sure it remains this way, choose a secure custodial or non-custodial wallet that will make your explorations into Web3 worthwhile. Visit nexo.io to learn more about Nexo’s comprehensive financial services that put security first and spearhead the evolution of the ecosystem. 

 

This post is commissioned by Nexo and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.