Not your Keys...Not your Crypto

That phrase should be your key lesson and is a fundamental principle in the world of cryptocurrency. It refers to the idea that if you don't control the private keys to your cryptocurrency wallet, you don't truly own your crypto. Here's how it works: 

In cryptocurrency, your private keys are what give you access to your funds. A private key is a cryptographic code that allows you to sign transactions and proves ownership of the assets in your wallet. Whoever holds the private keys has control over the funds.

When you store your cryptocurrency on a centralized exchange (like Coinbase, Binance, or Kraken) or with a third-party custodian, the exchange holds your private keys on your behalf. This is convenient, but it means that you don't have direct control over your assets.

• Risk: If the exchange is hacked, goes bankrupt, or decides to freeze your account, you could lose access to your funds. Because you don't hold the private keys, you have no way to retrieve your crypto in these situations.

To truly "own" your crypto, you need to store it in a wallet where you control the private keys. This could be a hardware wallet (like Ledger or Trezor), a software wallet, or any other form of non-custodial wallet. When you control the private keys, you are the only one with access to your funds.

The phrase "Not your keys, not your crypto" aligns with the ethos of decentralization and personal control that cryptocurrency advocates promote. The idea is that cryptocurrencies were created to eliminate the need for intermediaries, such as banks or centralized exchanges, and empower individuals to manage their assets directly.