Much like regular paper shredding, you may want to be sure certain files on your computer are not recoverable, and it'd probably be nice to do it without shredding your whole computer. Because, you know, you probably want your computer for other things.
Crypto shredding is where you delete or overwrite on your encryption key. An encryption key is what helps computers decode encrypted data, kind of like those old Cracker Jack decoder rings, except way better.
Best practices for crypto shredding:
1) The only way this works is with encrypted data. At this point if your data isn't fully encrypted, you should be looking into it. Anytime you send an email or jump onto a cloud service or anything like that, you're opening yourself up to unnecessary risks.
2) For cloud computing services, use a "bring your own encryption" option whenever possible. This means that even your cloud service provider can't leak or expose your data being used on their application, because even they don't have the key.
3) Ensure your encryption keys are stored securely and can't be duplicated because otherwise they're useless
4) Be sure that you have a strong level of encryption, and be aware that over time this is likely to need to be updated
5) Overwriting is better and more thorough than deleting your encryption key
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