Holding your own keys when it comes to cryptocurrency is an important concept to understand. It means that you, as the user, are responsible for safeguarding your own private key. This private key is what gives you access to your cryptocurrency holdings and allows transactions to occur on the blockchain.
It is essentially like giving yourself a bank account number and password. When you hold your own keys, no third-party, such as an exchange or money transmitter, can access or take control of your funds. Furthermore, if you keep the private key safe and secure, you are in full control of your finances and you can decide when and with whom you transact.
The benefits of holding your own keys is that you have complete control and ownership over your digital assets. This makes it much more difficult for hackers to gain access and steal your cryptocurrency. Furthermore, it eliminates any potential risk from a malicious actor having access to your personal information.
It’s also important to note that when you hold your own keys, you are also responsible for keeping them secure. This means you should never share the private key with anyone and should always keep it stored in a safe place. Additionally, it’s recommended that you use a hardware wallet to store the key since they provide the most secure way to store cryptocurrency.