Why We Support #ProofofKeys and You Should, Too
On January 3, 2019 the global crypto community will celebrate the annual Proof of Keys event.
In this blog post, we’ll discuss what the Proof of Keys event is, why there’s been so much buzz around it, and its significance to the global crypto community.
Our hope is that we’ll answer all the questions that you have so that you can get involved, too!
All About #ProofofKeys
The January 3 event had already garnered solid traction across social media, forums, and blogs. And as we enter 2019, the support continues to grow.
According to Mayer in a recent interview, “crypto holders should know how to store and protect their crypto private keys, and effectively transfer them into their own possession at will.”
He also stressed the notion of removing your cryptocurrencies from third parties is an effort to prove solvency.
“People need to understand the importance of proof of keys and proof of work. And so why not do it on the genesis block day [January 3]. Why not turn this into an annual celebration that we can do as a community, and just demand proof of the keys.”
In fact, you don’t need to own any cryptocurrency to take part. It’s an educational event meant to teach people the true meaning behind cryptocurrency.
Recommended Reading: What is a Private Key? SHH! It’s a secret
KeepKey Supports #ProofofKeys: Will You?
Here at KeepKey, we’re proud to support the #ProofofKeys celebration. Your protection and security will always be our top priority.
We live, work, and breath the mantra your private keys and cryptocurrencies belong only to you. Your trust is what keeps our business going.
Exchange ≠ Trust
We understand some people will continue to store their crypto with third-party services and exchanges.
And that’s ok.
Although generally, the rule of thumb is not to store your crypto on exchanges, unless you need them for trading (e.g. you have a short-term stop loss orders in place).
Let’s break down why this is problematic:
- When an exchange holds your cryptocurrencies, you’re entering into a trust agreement with them. In other words, the exchange is agreeing to store your crypto after deposit. And you’re agreeing that you should be able to withdraw your funds at any time.
- Beyond being susceptible to hacks, entering into this trust agreement also means that this trust can be betrayed through an event that’s out of the exchange’s control. Cryptocurrency was designed to avoid this.
- Bottom line: if you use an exchange versus a cold storage option, such as a hardware wallet, you’ll have to have complete third-party trust that the exchange is holding the funds that they say they are.
- When your cryptocurrencies are stored on a hardware wallet, you’re in complete control of your crypto.
- This also means you — and only you — have control of your private keys.
- And with both your private keys and crypto on your cold storage device (where you can still make exchanges) you’re safe and secure.
Recommended Reading: Crypto Storage: A Simple Guide
Here’s why you should take part in #ProofofKeys on January 3rd
- To test exchanges or other third-parties and see if they are holding as much Bitcoin as they claim they do!
- To gain proactive training and experience when it’s not a life-or-death situation.
- If you’re a newbie, #ProofofKeys is a good way to practice moving and properly holding your own private keys.
Ok, I’m Convinced! How Do I Get my Bitcoin off Coinbase and onto my KeepKey? It’s easy!
- Generate a receiving address on KeepKey.
- Select the bitcoin account which will receive the bitcoin.
- Click on “Receive Bitcoin”.
- You will see a bitcoin address with a QR code.
- To copy the address, click on the green clipboard icon.
- Sign into the exchange from which you want to send bitcoin.
- Enter the address you copied into the “send to” field.
- This is the receiving address for your transaction.
- Send the transaction.
- The transaction will be visible on your KeepKey shortly thereafter.
- If you are using a mobile app, you can scan the QR code above the address instead of copying the address.
Recommended Reading: How to Send Assets From an Exchange to your KeepKey
The January 3rd Proof of Keys event is to help people understand that if you don’t have your private keys, you don’t have cryptocurrency.
In fact, it’s meant to teach people the meaning behind cryptocurrency.
So as we round out 10 years of Bitcoin, let’s set the tone for the next 10 years by exercising our financial sovereignty.
But always remember, the safest way to store your cryptocurrencies is always on a “cold storage” device, like KeepKey.