Not your Keys; Not your Crypto!

By Cryptomanuals on Altcoin Academy

Every January 3rd the Bitcoin community is invited to participate in a “Proof of Keys” celebration by taking possession of all Bitcoins held by trusted third parties on their behalf. It was started by Trace Mayer founder of the “Bitcoin Knowledge” podcast, as a way to celebrate the financial freedom embodied by the Bitcoin philosophy.

Centralized exchanges do not provide you with your private keys. Instead, they let you log-in with a well known username-password combination. Not owning your private keys means that you do not truly own your assets. Instead, the exchanges are the “custodian” of your assets, and they hold your funds. Hardware wallets enable you to store your holdings while owning your private keys. This way, you can access your funds by yourself without the need for third parties.

This simple exercise costs little, perhaps a few transaction fees, yet proves possession and strengthens network consensus. Companies and exchanges must prove their trustworthiness and consensus. -www.proofofkeys.com-

www.proofofkeys.com

What is proof of keys?

Every year cryptocurrency owners celebrate their independence and autonomy with a test of trust. This initiative tests people, exchanges, corporations, and other services by withdrawing all their cryptocurrencies to wallets they control (hold private keys).

Managing your assets is in line with the founding principles of Bitcoin. Cryptocurrencies enable financial freedom and the ability to take control of your assets like never before. By not holding your keys, you’re giving up the fundamental freedom that Bitcoin and other cryptocurrencies provide.

When you are not in control of your private keys and instead have your funds stored in a hot wallet on a custodial exchange account, you don’t truly own your cryptocurrencies and thus run additional and unnecessary risks.

What’s the difference?

Traditionally, you store your currency at the bank in an account in your name. You think you have access and you can withdraw your currency at any time. In theory, this might sound correct, but usually, the bank doesn’t have your money. Banks typically have a fraction…