Wallets, Keys, and How Ownership Works?
Crypto ownership is about control of private keys, not accounts in your name.
1. Public & Private Keys
Public key / address: Like your bank account number; you can share it to receive funds.
Private key / seed phrase: Like the master password to that account. Anyone with it can control the funds.
A wallet is just software or hardware that helps you:
Generate keys
Show balances
Sign transactions
2. Types of Wallets
Custodial wallets (on exchanges)
Exchange holds your keys.
Easy to use, but you rely on the exchange’s solvency and security.
“Not your keys, not your coins” highlights this risk.
Non-custodial (self-custody)
You control the keys.
Can be:
Hot wallets (phone/desktop extension): convenient, but internet-exposed.
Cold wallets (hardware wallets, paper): more secure, less convenient.
If you self-custody, backing up your seed phrase safely is critical. Losing it usually means losing access forever.
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