Crypto wisdom #2: Not your keys, not your coins
“With great power comes great responsibility.” Spiderman already knew this and it also applies to crypto and co. Because only those who are the master or mistress of their private keys really own their cryptocurrencies. They give access to your own crypto assets. Anyone who loses it is locked out forever.
If you let third parties keep the coins - such as exchanges like Coinbase or custodians - you are actually entrusting them with the safekeeping of the assets. It's convenient, but also dangerous. There are many examples of a rude awakening: In the most famous stock exchange hack in 2014, over 850,000 Bitcoins were stolen from Mt. Gox. Small investors looked down the drain. Ouch.
But the essence of “not your keys, not your coins” goes beyond painful losses. Ultimately, Bitcoin and Co. are about sovereignty over your own finances. Nobody should have the opportunity to access their own assets, not even the state.
