Control The Bitcoin Cash Private Keys, This Is Your Future

Bring your BCH home, withdraw from exchanges and don't let the exchanges control them. Home is your noncustodial wallet.

You are in control, and Bitcoin Cash does not need any exchange.

The hackers lately target Defi and blockchain gaming platforms like Ronin containing vulnerabilities but the big exchanges are always a grand target for the hackers.

You've probably heard of the notorious North Korean hacking groups, which is often used as a scapegoat by other groups and for other reasons than to find the real criminals.

We haven't experienced a major hack lately in an exchange, and it is possible we will. Maybe it will be Binance again or another one of those claiming the highest security.

What we do is send our cryptocurrency funds out of the exchanges and into hot or cold wallets that give us access to the private keys. I cannot overemphasise the importance of this, as funds are not only safe when we control the private keys, but we are the only one that can move it.

I made a mistake in the sentence above that many in crypto will make too. We do not transfer our coins in exchanges or wallets, we do not hold the cryptocurrencies in our wallets and exchanges do not hold our cryptocurrencies in the exchanges.

The coins, let us say it is all Bitcoin Cash for this purpose, do not exit the blockchain but only move between addresses in the blockchain. To move the wallets we will need the private key, and the exchanges hold these private keys when we trust them with our Bitcoin Cash.

What we hold is not coins but the private keys. We use a private key to access our Bitcoin Cash address that contains unspend Bitcoin Cash and we can spend this amount by moving part of it or the whole to a different address.

Some wallets are called custodians or custodial. We also have cusodians like the crypto exchanges and trading platforms, and lately some banks are adding some of these custodian options for investing.

All these exchanges or trading rooms are not responsible to refund anyone whatever happens to them or the cryptocurrencies they are supposed to secure for us, so they are not responsible to refund the users if they get hacked, or lose the funds, or just block access to the funds. They control or hold your private keys, and you trust these exchanges will proceed by executing your withdrawal transaction if there is this choice available. Many of these trading rooms are just trading rooms and do not allow withdrawals.

You only control your crypto with the private keys. You are not in control of your Bitcoin Cash in any other terms. You will have to ask Binance for permission when you want to withdraw and if binance doesn't feel like, it will not send your Bitcoin Cash.

Understand this danger now and why when we don't hold access to our private keys is a risk? There is so many in cryptocurrencies today, and they don't, while this is the very first thing about crypto they should have learned. And everyone is in risk trusting all these platforms and big exchanges thinking they are unhackable. Are they?

The worst part is these platforms have no obligation for refunds unless they proceed in this way. If most of the funds are gone, users of these exchanges should not expect anything back.

The examples of the hacked exchanges not repaying the users or repaying a very lower rate are many, with the top one MtGox.