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Mitigating risks

Although we are required to forewarn you that, ultimately, ‘you could lose all your investment’, this is, in our view, a combination of the consequences of the failure of various poorly run firms and the nervousness from regulators on how to supervise the sector. Our relationship with goes beyond approving financial promotions. It helps us to understand the heightened obligations, incumbent upon regulated firms working with ‘high risk investments’. Together, our relationship may assist with the mitigation of various risks, though there are also some steps you can take to protect yourself, like staying informed.

Mitigating Counterparty risk, where possible it is helpful to maintain an up-to-date portfolio tracker. In the event of the failure of a 3rd party, administrators may require a detailed record of your holdings, including the coins owned, the quantity, and the purchase dates.

Mitigating Cybersecurity risk, we strongly recommend the following best practices to enhance security:

  • Implement Two-Factor Authentication (2FA) to add an additional layer of security.
  • Refrain from disclosing usernames and passwords.
  • Utilise secure offline storage solutions, such as hardware wallets or paper wallets, for safeguarding your digital assets.
  • Ensure that your offline storage mediums, i.e., hardware wallets or paper wallets, are stored in waterproof and fireproof containers to protect against environmental damage.
  • Archive data using at least two different storage mediums (e.g., multiple encrypted USB drives) and store them in separate physical locations to mitigate risks associated with localised disasters.
  • Under no circumstances should private keys or seed phrases be shared with unauthorised individuals.
  • Utilise Virtual Private Networks (VPNs) and incognito browsing modes when accessing exchange platforms.
  • Ensure that your computing devices are equipped with up-to-date antivirus software and firewall protections.

Adherence to these best practice guidelines will significantly improve the security of your digital assets.

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