Mercifully, readers who have found themselves responsible for holding crypto‑assets need only follow a few basic best practices to avoid the worst of these risks.

Tenets of crypto custody

Conceptually, the same risk management considerations apply as when selecting a bank to hold cash and financial assets. With traditional assets one can simply pick a well‑known bank and can, to some extent, rely on the fact that these entities are usually publicly owned, regulated and heavily scrutinised, with long track records.

In contrast, for crypto, one will have to do the work oneself. Below are some suggestions.

First, set up an internal crypto and IT risk committee. It should be charged with stress testing, reviewing, debating and monitoring all crypto activities. It might be the very youngest, more tech‑savvy staff members who should be on the committee, but outside experts can also be invited. Sign up to crypto monitoring sources and newsletters to ensure you are kept up‑to‑date with the latest news and trends.