Crypto is neither here nor there. You can't touch it, hug it, kick it or even put it in your back pocket for safekeeping.

It’s intangible property that carries worth, similar to how intellectual property carries value. However, crypto isn't expressed as an idea, but as 64 precious digits that amount to unthinkable sums.

So you became a crypto millionaire. The question is, then, where should you store it all?

Wallets

This is the most popular method for storing cryptocurrencies and options here run into the hundreds with all sorts of providers vying for you a slice of your currency.

These wallets can be accessed via computer and mobile applications making them simple to use but vulnerable.

For the user with a few ether or a bitcoin or two this option may be the most accessible and cheapest way of storage, but - even with multisig - wallets are susceptible to theft.

Big money needs more security.

Exchanges

Some of the crypto exchanges out there have built a very reputable name for themselves and are quickly becoming a force to be reckoned with.

Firms like BitFinex, Kraken and Bittrex are becoming very sophisticated in their security features and reputable counterparties. However, exchanges have gotten a bad rep from some of the more shady dealings of companies; when it gets dodgy people run scared.

Moreover, these marketplaces aren’t currently regulated and if/when regulations come in, we could see some sharp closures of many exchanges.

Another problem is presented in clarity of the financial state of companies providing this service. It seems that, at present, there aren’t any IFRS audited financial statements available for these firms, even for the industry leaders.

Lastly, hacker attacks represent a significant and real risk (e.g. Mt. Gox) even for some of the more respected and reliable exchanges.

Specialised hard drive devices

Many large crypto investors use offline hard drives to store their assets, with greater protection being offered through cold storage: i.e. the private keys are held completely offline.

However, this does not solve the very real issue of degaussing where sophisticated equipment (usually used by special forces) can be rented out for a few hundred euros per day and can wipe any hard drive by de-magnetising it.

Game over, your investment is reduced to zero.

Paper

You could opt to print out your private key on a piece of paper, but you would have to go to special effort to have this information erased from your computer memory and your printer memory.

You know what? You could even write it down. But that scribble on that paper may become lost, destroyed, stolen or even illegible over time.

So if you’re a paranoid SOB where do you store your millions worth of crypto??

Couple physical security with specialised equipment

Minimise storage risks by placing your assets offline in facilities that were previously used as military bunkers, such as the Deltalis hyper security bunker in the Swiss mountains which bills itself as the most secure datacenter in the world.

These places come heavily guarded to combat degaussing risks and are able to withstand nuclear war, whilst your keys are stored in cold vault storage and out of the reach of online thieves.

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