If you’ve been around the cryptocurrency and blockchain space then, there are some terms you must have heard around, like FOMO (Fear of missing out), FUD (Fear, Uncertainty, and Doubt), WHALES, BEARS, and all. The phrase “Not your keys, not your coins” is another popular adage within the cryptocurrency community, emphasizing the importance of owning and safeguarding one’s private keys in managing cryptocurrencies. In simple terms, it means that if you don’t hold the private keys to your cryptocurrency wallet, you don’t truly own or have control over your assets.
Recall, Cryptocurrencies operate on a decentralized network, which means that users have complete control over their digital assets without the need for an intermediary like a bank or any other agencies. However, with this freedom comes the responsibility of managing and securing one’s assets, which is actually a major worry about the decentralized idea in the blockchain space. This is because the private keys are essentially the passwords that allow you to access and move the cryptocurrencies in your wallet. If you don’t have control over the private keys, then you are relying on someone else to hold and protect your cryptocurrencies for you, which can be risky.
Crypto wallets, like Metamask, store private keys that give owners access to their cryptocurrency holdings. These keys are essentially passwords that allow users to send, receive, and manage their digital assets. The phrase “Not your keys, not your coins” warns users that if they store their cryptocurrency on exchanges, custodial wallets, or other third-party platforms that hold their private keys, they are not in full control of their assets. This is because these platforms can have security vulnerabilities, can be hacked or shut down, and in some cases, can even confiscate your funds.
By keeping your crypto on a non-custodial wallet like Metamask, you ensure that you own the private keys to your digital assets. This means that you have complete control over your funds, and you are responsible for securing your private keys. Additionally, non-custodial wallets are designed with robust security features, such as encryption and two-factor authentication, to ensure that only the owner of the wallet can access the private keys. It’s also important to mention that losing these private keys may result in one losing his funds and assets, this calls for carefulness is safeguarding one’s private keys.
To conclude, “Not your keys, not your coins” is a warning to cryptocurrency holders to always be in control of their private keys. By using a non-custodial wallet like Metamask, you can safeguard your digital assets and ensure that you have complete control over your funds. So, it is highly recommended to keep your cryptocurrency in a non-custodial wallet and remember to always keep your private keys safe and secure.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: Photo by Jozsef Hocza on Unsplash // Image Effects by Colorcinch