Published by #هيئة.الأوراق.المالية.والبورصات.الأمريكية (#SEC ) an awareness bulletin explaining "Cryptocurrency Asset Preservation Basics" for individual investors, focusing on how to store digital assets and access them through cryptocurrency wallets.

It mentioned that the wallet does not store the assets but stores the private keys, which act as a secret password that authorizes transactions. These must be kept carefully; losing them means permanently losing access to the assets. Meanwhile, the public key is used as an address to receive assets.

The authority classified wallets into two main types:

Hot Wallets (Hot Wallets): connected to the internet (applications, web), providing easy access for transactions, but more vulnerable to cyber risks.

Cold Wallets (Cold Wallets): physical devices not connected to the internet (such as USB drives), and are more secure against electronic threats but are susceptible to physical loss or damage.

It clarified that investors can choose self-custody or rely on a third-party custodian. The main risks include loss of keys, hacks, or the custodian’s bankruptcy. The bulletin aims to enable #المستثمرين informed decision-making and understanding security procedures and their rights before investing.

Source: U.S. Securities and Exchange Commission (SEC)