If you have any crypto on any exchange this crypto is not yours.
You don't own it. All you own is a ledger entry on the exchange that you supposedly have crypto on there under your username.
Ownership of crypto is only proven by having the private key of the wallet that crypto is in.
(On the Steem blockchain we call this private key the master password or owner key, I recommend you never use these keys for anything ever, use the posting key or active key instead). If you have no clue what I am talking about please stop reading and educate yourself about the keys here. It's extremely important.
On an exchange you don't have the private key so therefor you don't own anything.
So when you send STEEM to any exchange you are no longer the owner of this STEEM, you are the owner of a ledger entry on the exchange that you supposedly have STEEM on there under your username.
Tomorrow on the 3rd of January the proof of keys event is scheduled. Specifically for Bitcoin.
It's an interesting event where Bitcoin holders are asked to remove their Bitcoin from the exchanges and store it in a private wallet to proof they actually own it.
This should highlight several things of importance but mostly:
It should proof that the exchanges actually have all the Bitcoin they say they have.
As you can imagine it could be very tempting to create some 'extra' Bitcoin in the form of changing some of the Ledger Entries. Creating an extra 50 or 100 Bitcoins...who is to know?
As long as not everyone pulls their Bitcoin from an exchange this should work fine.
I'm not sure how many people will participate and how much traction this event will get.
But I guess it's never wrong to remind people of the fact that if you don't have the private keys of your crypto you don't own anything!
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So good to see posts like this from an established well known authors like yourself.
I have never really been a fan of keeping my crypto on an exchange. Yeah it is an extra step that can be annoying at times when you want to move it around, but I just like the idea of holding it myself. Especially with projects like EOS where some exchanges didn't give you the airdrops if you were holding it on them and not in a wallet.
I have a bit of EOS and bitshares on thd bitshares exchange -- i am so naive about all this. I think i have the private keys for this account and that it's a good place to keep these coins. Am i out to lunch with my thinking?
With EOS your best bet is to get it into a wallet like Scatter or GreyMass. That way you can at least stake it and use it to vote for BP's. Plus you will also get any airdrops that come out moving forward. I am not sure if the bitshares exchange allows for airdrops. Someone else might know that. I honestly don't know a ton about bitshares. I tried to create a wallet one time and I couldn't get it to work.
Right on, i will check those out. I appreciate your input @bozz !tip
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NEVER leave your crypto on an exchange.
It will be very interesting to see how it affects the exchanges. This is also why I'd rather buy physical gold and silver. Hope you had a great new years. Take care! :)
Tommorow it will be an interesting day for sure:) Do you think it will also have some impact to the prices?
I sure hope they have the BTC they claim to have.
When it would be revealed fake volme with fake bitcoin which do not exist could end bad for everyone involved.
I dont think mt gox bad but still pretty bad.
We shall see how many people participate anyways.
On the other hand it would prove how badly we need good decentralized exchanges
Hitbtc exchange already freezed customer accounts. It's starting !
Soon we see who is solvent and who is not
will be interesting to see.
I have faith in Binance though
I don't have a significant amount of crypto on exchanges for a loooong time. Since poloniex first started having "problems", "maintenance", "other issues" with Steem and SBD I realized it was not a good idea to leave cryptos on their side. Soon after was bittrex blocking withdrawals and asking for additional ID that took centuries to confirm.
I had a small amount of altcoins left on some exchanges but I took care of that yesterday to make sure I'd participate properly in the proof of keys event.
I'm curious about how it will go!
Cheers!
How about Bitshares DEX?
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Thanks for the reality check.
joy
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Do you recommend paper wallets, hardware wallets or software wallets on a computer? What do you prefer considering crashproof storage of your coins.
Great question! I am also curious about @exyle's personal preference here.
without keys nothing exist in this decentralised world !!!
It will be interesting to see how those exchanges with huge amounts of bitcoin in cold storage will operate around this. I hope they are preparing...
Posted using Partiko iOS
There's so many wallets out there! 😑 May I know what wallet are you using?
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