Maybe you have heard of Luna crash in early 2022, or the collapse of FTX at the hands of Sam Bankman-Fried (SBF) later that same year. Well this is for you…..for all of us!
“Not your keys, not your money” is a phrase that is often used in the cryptocurrency community as a reminder of the importance of maintaining control over one’s own digital assets. The phrase highlights the fact that if an individual does not have direct access to the private keys that control their digital assets, then they do not truly own those assets.
In the traditional financial system, individuals entrust their money to a bank or other financial institution, which holds and controls the money on their behalf. In contrast, in the world of cryptocurrency, individuals are responsible for their own assets and must take steps to ensure that they maintain control over their private keys. If a private key is lost or stolen, the assets it controls will be inaccessible.
The phrase “not your keys, not your money” is a reminder that when using a cryptocurrency exchange or other third-party service to store digital assets, one should be aware that the service has control over the private keys, and therefore control over the assets. This is why it’s important to use a wallet that gives you the control over your own private keys.
In conclusion, “not your keys, not your money” is a phrase that emphasizes the importance of individuals being in control of their own digital assets, and the need to maintain control of their private keys to ensure the safety and accessibility of their funds. It serves as a reminder that entrusting your assets to a third party, such as a centralized exchange, can lead to loss of control over your assets.
