While centralized platforms offer convenience, they pose significant risks. Using self-custodial wallets for the majority of funds ensures greater security and control over your Bitcoin.
Why is this expression used for?
The phrase "Not your keys, not your coin" is often used to encourage Bitcoin users to withdraw their BTC from custodial exchanges platforms.Literally, this expression highlights that not owning the keys to your Bitcoin wallets means not truly owning the BTC. This is because these keys, and only these keys, provide access to the funds, or "coins."An exchange platform, as the name suggests, is a platform used to exchange fiat money for Bitcoin. However, their original function is not to keep funds for their clients.Later, these platforms saw that it could be profitable to offer a user-friendly interface and allow their clients to delegate the custody of their funds to the platform, so they can use a friendly app and do not have to manage the private keys themselves.Indeed, managing private keys and a Bitcoin address's seed phrase can seem complicated for beginners and create a fear of losing funds. Indeed, if the keys to a wallet are lost, the funds are too.