![]() ![]() “Not your keys, not your coins” is typically used in reference to crypto exchanges or third-party investment managers that, through carelessness or malice, have on occasion lost millions in user funds to exploits or theft.Īnd even though Coinbase is trusted by millions of crypto users, it’s undeniable that even in the best of hands, sending crypto to wallets you don’t control can lead to missing out on potentially sizable gains.Įditor's note: This article was updated with comments from Wales. If you generate a backup of your mnemonic. This is significant since Bitcoin and other crypto are evolving and we don’t know what type of forks will be created, for what reason, or what will ultimately gain significant market share.” Your keys, your coins is one of, if not the single most fundamental principle of control and ownership in the decentralized cryptocurrency economy. The sentiment behind Not Your Keys, Not Your Coins reflects the fact that, if you leave your Bitcoin in someone else’s control, then you effectively hand them ownership over the private keys protecting your Bitcoin, and you can never be 100 certain that you’ll be able to get them back. “For Archer, Coinbase had complete discretion on what forks to offer. “If you choose to let someone hold your keys, this case reinforces how important It is to read the user agreement and understand what it is you are agreeing to,” Wales told Decrypt. When you keep your coins on an exchange, it means that the coins are stored in the exchanges wallet, a wallet (and private keys) which is within the exchanges control. Justin Winston Ono Wales August 22, 2020 It is always a good reminder and with the amount of new people in the space I thought its worth a post again. The ability to alienate the cryptocurrency is a strong indication that the cryptocurrency belongs to the exchange, rather than to the customer. In other words, If you don't control the private keys to your cryptocurrency wallet, you don't truly own. Not your keys, not your coins is a saying that gets passed around a lot in this space. If you're here, you probably have heard the famous 'Not your Keys, Not your Crypto' phrase and are wondering what it means. In other words: “Not Your Keys, Not Your Coins” is now precedent in California and I imagine will be highly instructive for other jurisdictions hearing similar claims. 'Not your keys, not your coins' is a common phrase used in the cryptocurrency world that emphasizes the importance of holding your own private keys to your cryptocurrency assets, rather than relying on a third party to hold them for you. ![]()
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