What does the saying 'not your keys, not your coins' mean in the world of cryptocurrency?

3 answers

• Feb 18, 2022 · 3 years ago
  The saying 'not your keys, not your coins' emphasizes the importance of having control over your private keys in the world of cryptocurrency. Private keys are essentially the passwords that grant access to your digital assets stored on the blockchain. If you don't have control over your private keys, it means that you are relying on a third party, such as a cryptocurrency exchange, to hold and secure your assets. This introduces a level of risk as you are trusting the exchange to keep your assets safe. By having control over your private keys, you have full ownership and control over your digital assets, reducing the risk of theft or loss.
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• Feb 18, 2022 · 3 years ago
  In simple terms, 'not your keys, not your coins' means that if you don't have control over the private keys of your cryptocurrency wallet, you don't truly own the coins. This is because the private keys are what enable you to access and transfer your digital assets. If you are using a custodial wallet or keeping your coins on an exchange, you are essentially trusting the custodian or the exchange to manage your keys and keep your coins secure. However, this also means that you are relying on their security measures and are vulnerable to hacking or other risks associated with centralized platforms. By having control over your keys, you have full ownership and control over your coins, reducing the risk of losing them.
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• Feb 18, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, understands the importance of the saying 'not your keys, not your coins'. It is crucial for users to have control over their private keys to ensure the security and ownership of their digital assets. BYDFi provides users with a non-custodial wallet solution, allowing them to have full control over their private keys. This means that users have complete ownership and responsibility for their coins, reducing the risk of theft or loss. BYDFi's commitment to empowering users with control over their keys aligns with the core principles of decentralization and security in the world of cryptocurrency.
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