Comparison of Cryptocurrency Storage Methods Security Risks, Costs and Market Impact
DOI:
https://doi.org/10.62598/JVA.12.1.6.28Keywords:
Cryptocurrency, Custodial Storage, Non-Custodial Storage, Security Risks, Digital Asset Management, BitcoinAbstract
Purpose: This paper compares dominant cryptocurrency storage methods, analyzing their impacts
on security, cost effi ciency, and market dynamics. It explores how custodial and non-custodial approaches
infl uence user behavior, institutional adoption, and regulatory frameworks in the digital asset ecosystem.
Design: The study uses a comparative analytical framework to assess technical, operational, and economic
dimensions of hardware, software, and custodial storage models.
Methodology: A qualitative approach is employed, drawing on academic literature, industry reports, and case
studies of major security incidents, including Mt. Gox, FTX, Bybit, and Lazarus Group attacks.
Approach: The research systematically contrasts custodial and non-custodial paradigms, focusing on
technological foundations, risk profi les, and user control mechanisms.
Findings: Custodial solutions provide accessibility and compliance but carry third-party and systemic risks.
Non-custodial methods off er autonomy and resilience but require technical expertise and accountability.
Hybrid models eff ectively balance usability and security.
Originality of the Research: The paper synthesizes existing knowledge with recent breach analyses into a
cohesive comparative framework, delivering actionable insights for investors, regulators, and developers to
enhance safety and effi ciency in cryptocurrency storage.
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