Clear DefinitionsNot Your Keys, Not Your Coins
1 min read
Pronunciation
[not yor keez, not yor koyns]
Analogy
If you don’t hold the keys to your house, you don’t really own it.
Definition
A mantra emphasizing that only wallets where you control the private keys truly grant ownership of crypto assets.
Key Points Intro
This principle underscores:
Key Points
Self-custody: Control your own private keys.
Counterparty risk: Avoid trusting exchanges with funds.
Ownership proof: Keys = access.
Security responsibility: You are responsible for key management.
Example
Keeping Bitcoin on an exchange violates this mantra; moving to a hardware wallet ensures “your keys, your coins.”
Technical Deep Dive
Funds on custodial platforms held in pooled addresses; users have only account claims. Self-custodial wallets derive addresses from user-controlled seeds, ensuring direct control of UTXOs or accounts.
Security Warning
Self-custody demands secure key backup; careless storage can lead to irreversible loss.
Caveat
Not all users have the expertise for safe self-custody.
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