Not Your Keys, Not Your Coins
Understanding Private Keys
If you've ever heard the phrase "not your keys, not your coins" and wondered what it means, we’ll help clarify it in simple terms. First, let’s understand "keys" or "private keys."
Think of your crypto wallet as a piggy bank, and here are two important things to note:
Your Private Key is the Key to Your Piggy Bank: Your private key is like the key to open your piggy bank. It's a secret code that lets you access your cryptocurrency funds. Without it, you can't open the piggy bank and use your money.
Your Wallet Address is the Address of Your Piggy Bank: Your wallet address is like the location of your piggy bank. It's a long code made up of letters and numbers that people can use to send you money. But having the address alone doesn't give access to your money, just like knowing the location of your piggy bank won't help someone open it without the key.
With blockchain-based assets, a "key" refers to a cryptographic key pair. This pair consists of a public key (your wallet address) and a private key (used to access and sign transactions to spend or transfer funds). The private key is the password or secret code that provides ownership and control over the funds associated with the corresponding public key.
Remember, your private key is like the key to your piggy bank. If you lose it, you lose access to your money. So, always keep it safe and never share it with anyone.
"Not your keys, not your coins" emphasises the importance of being in control of your private key to have full control of your crypto. If you don't control the private keys to your digital money, you don't really own it. When you keep your coins on an exchange or someone else's platform, they are holding the keys, and you depend on them. But this comes with risks because they might get hacked or restrict your access.
To truly own your coins, use a wallet where you control the private keys yourself - a self-custody wallet. This way, you have full control and can keep your money safe from potential risks.
If you’d like to get started with self-custody wallets and need an easy one to start with, we recommend downloading Onboard Wallet. The user-friendly wallet allows you to seamlessly convert your local currency to crypto and vice versa within minutes. With Onboard Wallet, you can securely store your crypto and gain greater control over your financial assets. Take the first step towards financial empowerment and start exploring the benefits of self-custody with Onboard Wallet today.
DISCLAIMER: This newsletter is for educational purposes only and is not investment advice or a solicitation to buy or sell any assets. Please do your own research before making any investment decisions.
