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Your Door Is Locked By Inside And You Don't Have The Keys

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Written by   322
2 months ago

What will you do? Possibly try to push the door, break the lock or the last resort will be to break the door. But what about the Crypto Keys, do you know the only place where a Cryptocurrency is safest is in the wallets of which you know the keys i.e. the seed phrases. Though there are lots of wallet types like hardware wallets, software wallets, and custodial or non-custodial wallets.

The safest wallet is the one to which you have the access to its seed phrase.

In centralized Crypto exchanges like Binance, Huobi, Kucoin, etc we can trade, and exchange hundreds of Cryptocurrencies and I must tell you every crypto you are storing there is stored in their wallets and the exchanges are allowing you to perform such activities involving trading, exchanging. Technically and in reality, it's their Crypto that you are using to trade in those platforms not yours. They have the right to lock the funds, stopping withdrawal, exchange etc.

And this is why people are told not to keep and hold Crypto in Centralised exchanges. Only to keep cryptos in a non-custodial wallet like Bitcoin.com, Metasmask, Trust Wallet, etc.

Big Red Flags

The recent incidents of Coinflex, and FTX shook the whole Crypto world and I am not able to remember another name that was similar to Nexo giving some % for holding Cryptocurrencies. Care to remind me of those scammer's names, lol. They just showed how bad the centralized Crypto exchanges are and they aren't safe at all. Stopping Withdrawals, and doing shady transactions are now centralized exchange habits. Now BlockFi and Crypto.com are also on the red alert for being bankrupt or something like that as per some information and rumors.Oh, I remember the name now while checking the grammars, Celcius was it's name.

These examples are a sign and a big slap to us to realize that these exchanges are not at all trustworthy to hold Crypto. They should only be used for trading but that is also turning risky nowadays there because of the inside price manipulation they do there. If you don't know you can also trade in decentralized exchanges like Pancakeswap and Uniswap, the method is not that hard. And with such Crypto revelations in this bull market. People will definitely look on to the Dex exchanges.

Get Your Own Keys

But my main focus today is for crypto holders who accumulate or store Crypto for long-term use and want to cash out at one time. Then I will recommend you store it in non-custodial wallets like Metasmask, Bitcoin.com, and Trust Wallet, not on Binance or any other exchange. Only transfer funds when you need to trade crypto or you can even try the Dex exchanges. And just in the time of cashout or converting it into fiat currency for withdrawal only then transfer it in Centralised exchanges.

Because these centralised exchanges can lock the door from inside while holding the keys. Since you don't have the doors key, you won't be able to do anything at all.

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Final Thoughts

My 70% portfolio is in Non-custodial wallets which can be only accessed by me using the seed phrases. No one can stop me from trading or can lock my funds. Just 30% is in two centralized exchanges, which I have transferred a month ago to do short-term trades using the volatility and after some time they will be moved to decentralized non-custodial wallets in which I will have the Keys and will open and lock them whenever I feel so.

But of course, if I lose my keys that is the seed phrase or recovery phrase there's no way to access my wallet and it will be lost in the Blockchain. So save your seed phrases as if they are big vaults with a valuable asset in them.

Even now if you are holding a big percentage of sums in Centralised exchanges then if something bad happens in future which nobody wishes for then you will be considered a Fool, sorry. Because how can you neglect this much red flags.

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Written by   322
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Comments

I only use a bitcoin wallet, sir, since I don't know about trading. If ever I have my BCH, I transfer it to my wallet, and at the end of the month, I convert it into peso currency. Additional money for the needs of my family.

$ 0.00
2 months ago

Good, Bitcoin.com wallet is a non custodial wallet and you get your seed phrase in it. Make sure you have saved it. It's better than keeping it in exchange. Just while cashing out transferring it to exchanges is a safe option.

$ 0.00
2 months ago

If the window were open, I would make use of a magnet instead. I'd tie it to a long stick and pass it through the window and locate my key with it. Thank God my key ls are always on a table or somewhere open. So it wouldn't be add to see it and attract the bunch with my magnet........ Oh sorry, I just discovered that the article was talking about crypto. Ooops 🤭🤭

$ 0.00
2 months ago

Most of the Windows have set keys nowadays and they are only available in PC or laptops. Without it one can't open their devices. Oh wait sorry, I thought this was a Windows PC related comment.

$ 0.00
2 months ago

Here we go again 🤣🤣🤣🤣

$ 0.00
2 months ago

I'm not sure how come I haven't done this mistake of Putting assets in exchanges. I thought mistakes happen by only me but well ever since the beginning I'm keeping funds in wallet where key's belong to me and some in Binance where it's least risk.

Well, Saved my seed phrases like it's my child and that's the most important thing.

$ 0.00
2 months ago

In some fields one is supposed to be better in at least on field than the others, looks like you had that of keeping Crypto in wallets which I started doing some months ago.

$ 0.00
2 months ago

Agreed dear BCH Wallet Metamask wallet is more secure because of seed phrases. I also put my holdings in BCH Wallet.

$ 0.00
2 months ago

Good work, that's the safest way as of now to save your Crypto from being lost.

$ 0.00
2 months ago

I once lost my seed phrase, thankful I just started in blogging so amt was less than an $. Now,it was well backed up!

$ 0.00
2 months ago

I also once but the amount was luckily low as 2$ or else I would have definitely got a heart attack.

$ 0.00
2 months ago