CRYPTORULE: “Not your Key, not your Coins!”

CRYPTORULE: “Not your Key, not your Coins!”

It always says “Not your Key, not your Coins!”. As long as your cryptocurrencies are with Binance, Coinbase and Co., they do not belong to you. Only when you have the private key. And in most cases that is not possible with such exchanges. So you have to get it down there and store it yourself.
A cryptocurrency wallet consists of a public key, the wallet itself, so to speak. And the private key is the key to open it and send money. If you use a third-party provider like Coinbase, you don’t have your private key there by default. Coinbase takes care of that. So it’s like putting your money in a bank and trusting that everything is going well.
One advantage of cryptocurrencies compared to traditional banking, is the possibility to keep your funds in your own hands.
You have to understand the difference between decentralized and centralized cryptocurrency services.
As soon as you are not the creator of the adress and do not hold the private keys for a funds adress, you have no control about the funds on it.

Centralized services, which are called custodial services, keep and manage the funds on your behalf and in case of emergencies with this service, you could loose all your funds related to that service. Something like a traditional bankrutcy.


So remember always! “Not your Key, not your Coins!”

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