Proof of Keys has been around for quite some time, but it’s recently picked up steam as more crypto exchanges continue to fight against the freedom of our personal finances. Proof of Keys, simply put, is a movement encouraging people to take their crypto off of crypto exchanges and place it into their own personal cold storage wallets, where they control the private keys. This removes the power of financial control from the crypto exchanges and gives it back to the people – a huge part of Satoshi Nakamoto’s original vision.
Exchanges Getting in the Way
It’s no secret that if crypto is held away from crypto exchanges, there will be a lack of liquidity on numerous crypto exchanges and this will cause a supply/demand problem. On top of this, some exchanges are still rather unregulated and there is a good chance that your crypto isn’t actually there. HitBTC has caused a furor in the last few days as it froze accounts and blocked withdrawals. It’s this behavior that Proof of Keys aims to absolve from the crypto world.
Removing Risk from Your Holdings
If you’re in charge of your own money, you are automatically minimizing the risk factor. Should a crypto exchange go bust or be hacked, your crypto will be nice and safe in your private cold wallet, ideally stored away somewhere secure. If you control your own finances, you aren’t relying on someone else to help you manage your funds, making crypto highly desirable in countries that are facing economic trouble. Look at the banking collapse in Greece a few years back. Banks limited how much you could withdraw from your account each day; Proof of Keys is giving you the power to be your own bank in many ways.
Get Yourself a Decent Hardware Wallet
When it comes to storing your crypto safely, you’re going to want a decent hardware wallet. However, not all are created equal and there are a lot of fakes out there. So far, the best-looking one appears to be Sony’s new contactless wallet as it gives you the power to make transactions without needing a computer. However, it’s still a few months out from production so for the meantime you might need to look elsewhere.
The trusty Trezor One and Nano Ledger S wallets are two stalwart hardware wallets that have stood the test of time. They are the most popular hardware wallets out there, and you certainly won’t be disappointed with either. They are both easy to use and won’t set you back a fortune. Just make sure you buy directly from the manufacturer as there are fake crypto wallets available online that could potentially steal all your crypto!
Proof of Keys is designed to raise awareness and give the power of financial control back to the people – it’s part of Satoshi’s original plan. While it might be a little more inconvenient for day traders to do, it’s certainly the best thing you can do if you’re in crypto for the long term.