Comparison of Cryptocurrency Storage Methods Security Risks, Costs and Market Impact
Comparison of Cryptocurrency Storage Methods Security Risks, Costs and Market Impact

Summary/Abstract: Purpose: This paper compares dominant cryptocurrency storage methods, analyzing their impacts on security, cost efficiency, and market dynamics. It explores how custodial and non-custodial approaches influence 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 profiles, 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 effectively 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 efficiency in cryptocurrency storage.

• Details
• Contents