Investing in cryptos? Divide holdings between hot and cold wallets

Keep the cryptos required for trading in the former and the balance in the latter

The adoption of cryptocurrencies by Indian investors is gathering pace. According to a recent survey by consulting firm Kantar, a sixth of urban Indian residents own cryptocurrencies and 19 per cent intend to invest in virtual tokens over the next six months. Experts estimate that more than 15 million Indians have invested in crypto-related assets so far.

However, with cryptocurrencies gaining in value rapidly over the past year, this asset class has become a prime target for hackers and scammers.

Hot and cold wallets

Cryptocurrencies are stored in digital wallets, which can be either web or hardware based, which store them in a