How can not having control over your private keys make your Bitcoin vulnerable?

3 answers

• Dec 16, 2021 · 3 years ago
  Not having control over your private keys means that you are relying on a third party to secure your Bitcoin. This introduces a single point of failure, as the third party could be hacked or go bankrupt, resulting in the loss of your Bitcoin. It also means that you don't have full control over your funds, as the third party can impose restrictions or freeze your account. This lack of control makes your Bitcoin vulnerable to theft and loss.
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• Dec 16, 2021 · 3 years ago
  When you don't have control over your private keys, you are essentially trusting someone else to keep your Bitcoin safe. This goes against the decentralized nature of cryptocurrencies like Bitcoin, where the whole point is to have control over your own money. By giving up control of your private keys, you are exposing yourself to the risk of theft, hacking, and loss. It's like leaving your money in a bank without any security measures in place.
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• Dec 16, 2021 · 3 years ago
  Not having control over your private keys is a common issue in the cryptocurrency world. Many exchanges, like BYDFi, hold the private keys on behalf of their users. While this may provide convenience, it also introduces risks. If the exchange gets hacked or goes bankrupt, your Bitcoin could be stolen or lost. It's always recommended to use a hardware wallet or a self-hosted wallet where you have full control over your private keys to minimize the vulnerability of your Bitcoin.
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