Proof of Keys- Steemit Crypto Academy- S4W7- Homework Post for @awesononso

When you start to use blockchain you may come to know about Publick Key & Private Key.

While using blockchain system if someone need to send you cryptocurrencies to you, they can send it to you by using your Public Key. If we puts it in very simple way, public key is your wallet address.
eg : In STEEM wallet my Public key is "sridhara" and anyone can send me sttem by using recepient as "sridhara".

Private Key is the one that you must worry about. You "MUST"
store your private key secretly and cannot loose it by any chance. If you loose it you may loose your assets.
You have control of your assets by private key. If you want to send crypto currencies to anyone you have to use your private key and it will encrypt them and send to the receiver and then he/she ONLY can decrypt it by using their public key. This can also use in sending secret messages too. So When we encrpt them by using private key no 3rd party can read or hack it.

Custodial wallets

When you use a centralized exchange(CEX) to buy cryptocurrencies, that will store your all cryptocurrencies on your behalf.They have your private key and have the ownership of the assets.If you want to make any withdrawals from your digital assets , CEX will send it on behlaf of our request.

eg : Binance, Coinbase, FTX, Bitstamp, Kraken

Non-custodial wallets

When you use a Decentralized exchange(DEX) to buy cryptocurrencies,they will automatically stored in your own wallet. You have absolute power of your assets. No 3rd party is enrolled. So you can make any transation by using your private key.
But one thing it important, that you must keep your private key safe and if you loose it, you may loose your assets. You have to take responsibility yourself.

eg: Metamask, Tronlink, Uniswap, Ronin, Phantom, STEEM wallet

Proof of Keys Day celebrated from 3rd of January 2019. This celebration is holding to prove that each Centralized exchange (CEX) working transparently. And this event helps to show that the owner has the absolute ownership of their assets. And help owners that they have absolute power of making Financial decision about their assets.

Precautions that should take

• Make sure you have safely secure public & private keys.
• Before make transaction make sure that you have chosen the correct blockchain network.
  Eg : In USDT transfers you have to select within TRC20 & ERC20
• Do not share your public & private key with any 3rd party

I'm using both wallets types. But I still prefer centralized exchange spot wallet over Decentralized wallets. I used to store and handle my cryptocurrencies in centralized exchange spot wallet "Binance". The reason for it as listed here.

• Their transaction speed is comparatively fast
• Handling the wallet is user friendly.
• High security of trading funds
• Trading volume is high
• Suitable for Buying and Selling Cryptocurrencies.
• Most important is that I can deposit Fiat by using Credit card.
• And also I can easily sell by crypto and take the money to my bank account.

With the above transaction I can say that I have absolute power to control my assets anywhere, anytime without any other 3rd party's help.