How does the phrase 'not your keys, not your coins' relate to the security of digital assets?

6 answers

• Dec 26, 2021 · 3 years ago
  The phrase 'not your keys, not your coins' emphasizes the importance of controlling your own private keys in order to secure your digital assets. In the context of cryptocurrencies, private keys are used to access and transfer funds. If you don't have control over your private keys, such as when you store your assets on an exchange, you are essentially relying on the security measures implemented by the exchange. This introduces a potential risk as exchanges can be vulnerable to hacking or other security breaches. By holding your own private keys, you have full control over your assets and reduce the risk of unauthorized access or theft.
  645323
• Dec 26, 2021 · 3 years ago
  Imagine your digital assets as a locked safe. The private keys are the keys to that safe. If you don't have the keys, you can't access the contents of the safe. Similarly, if you don't have control over your private keys, you can't fully control or secure your digital assets. Storing your assets on an exchange means you are entrusting the exchange with the responsibility of safeguarding your funds. While reputable exchanges implement security measures, there is always a risk of hacking or internal fraud. By holding your own keys, you take full ownership and responsibility for the security of your assets.
  611204
• Dec 26, 2021 · 3 years ago
  Not your keys, not your coins. This phrase highlights the importance of self-custody in the world of cryptocurrencies. When you store your assets on an exchange, you are essentially relying on the exchange to keep your funds secure. However, this means that you are not in full control of your assets. If the exchange gets hacked or goes bankrupt, you could lose your funds. This is where BYDFi comes in. BYDFi is a decentralized exchange that allows you to trade cryptocurrencies while maintaining control of your private keys. With BYDFi, you can ensure the security of your digital assets by holding your own keys and eliminating the reliance on centralized exchanges.
  671168
• Dec 26, 2021 · 3 years ago
  In the world of cryptocurrencies, the phrase 'not your keys, not your coins' serves as a reminder that true ownership and security of digital assets come from having control over your private keys. When you store your assets on an exchange, you are essentially trusting a third party with the responsibility of safeguarding your funds. While many exchanges implement robust security measures, there is always a risk of hacking or other security breaches. By holding your own keys, you eliminate the need to trust a centralized entity and take full control of the security of your assets.
  587118
• Dec 26, 2021 · 3 years ago
  The phrase 'not your keys, not your coins' is a popular saying in the cryptocurrency community that emphasizes the importance of self-custody. When you store your assets on an exchange, you are essentially giving up control of your private keys and relying on the exchange to secure your funds. However, this introduces a potential risk as exchanges can be vulnerable to hacking or other security breaches. By holding your own keys, you have full control over your assets and reduce the risk of unauthorized access or loss. It's like keeping your money in your own wallet instead of handing it over to someone else to hold for you.
  631106
• Dec 26, 2021 · 3 years ago
  Not your keys, not your coins. This phrase highlights the need for individuals to take responsibility for the security of their digital assets. When you store your assets on an exchange, you are essentially trusting the exchange to protect your funds. However, history has shown that even the most reputable exchanges can be vulnerable to hacking or other security breaches. By holding your own keys, you eliminate the risk of relying on a centralized entity and ensure that you have full control over the security of your assets.
  53076