Not Your Keys, Not Your Coins
"Not your keys, not your coins" is a widely cited principle in Bitcoin that means if you do not control the private keys to your Bitcoin, you do not truly own it.
When Bitcoin is held on an exchange or with a custodian, the custodian holds the keys and you hold a claim on the Bitcoin. If the custodian fails, is hacked, or is compelled by authorities to freeze your account, you may lose access. The principle advocates for self-custody or custody models where the holder retains meaningful control over the signing process.
"Not your keys, not your coins" means if you do not control the private keys to your Bitcoin, you do not truly own it.
Frequently Asked Questions
What is Not Your Keys, Not Your Coins?
"Not your keys, not your coins" is a widely cited principle in Bitcoin that means if you do not control the private keys to your Bitcoin, you do not truly own it.
How does Not Your Keys, Not Your Coins work?
When Bitcoin is held on an exchange or with a custodian, the custodian holds the keys and you hold a claim on the Bitcoin. If the custodian fails, is hacked, or is compelled by authorities to freeze your account, you may lose access.
What should Bitcoin holders know about Not Your Keys, Not Your Coins?
The principle advocates for self-custody or custody models where the holder retains meaningful control over the signing process.
