Do You Have The Key Where You Hold Your Crypto?
Do you remember what was going on in your mind when you first heard about Bitcoin and blockchain? You wanted to know more about it by getting involved. You were interested in looking into how it works?
People can transfer crypto from one wallet to another wallet. You want to create your crypto wallet. Probably you get to know about Coinbase where you can create an account and keep your crypto.
It is like having a Facebook or Twitter account. We get used to creating and having an account like that. So do you have the key where you hold your crypto? You created an account with a password and email address. And that's what you have. So where does the key come from?
Later, you get to know about private keys and public keys. When you create an account like this whether it is on a crypto exchange, lending platform, or any other platform where you have a password, the platform is the one that holds your key.
You are comfortable keeping your money in the bank, right? When you keep your money in the bank, the bank owns the money technically. Your name is there and it shows how much money you have. The bank is in control. Likewise, when you have your cryptocurrency in a crypto exchange or lending platform, that crypto exchange or lending platform is in control.
We know what happened in those lending platforms when the crypto market crashed. They went out of business, filed for bankruptcy, or, wanted some entity to save them from that position. Crypto exchanges can be hacked or they can make losses and go out of business. As a result, you lose your cryptocurrency.
When it comes to crypto, things can change very quickly. You have to take action immediately in case something happens. Sometimes you may not get a chance to react and take action to protect yourself when you don't hold the key. It is indeed, not your keys, not your crypto.
It is up to you to decide how you will hold your crypto. Cryptocurrency can give you control and freedom as long as you hold the keys. So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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