Why should everyone manage cryptocurrencies themselves?
|Slavomír Kaňuk|20017x
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Why should everyone manage cryptocurrencies themselves?

One of the main benefits of cryptocurrencies as innovative digital assets is that each user has virtually absolute control over these funds. No one can touch cryptocurrencies if you follow basic security procedures, and it is also impossible for anyone to steal them from you. The critical point of security is the storage of the private key, which is the only way to access the funds.

Of course, handling cryptocurrencies safely requires certain knowledge and habits, which can be acquired relatively quickly. That's why we decided when Dollero Technology was founded that the crypto academy must definitely be part of the project, and that's where we try to learn "how to do it". However, it often happens that new users, in particular, are not interested in obtaining the necessary information.


That is why we see the trend in which people buy cryptocurrencies through various companies and they then hold their cryptocurrencies. The clients of these companies thus voluntarily give up one of the biggest benefits of cryptocurrencies and are exposed to unnecessary risk. The same security problem is posed by sending funds to the exchange, which is why it is not recommended to hold larger amounts on these platforms.


If you asked the basic rule of working with cryptocurrencies, you would quite likely get the answer - "Not your private key, not your Bitcoin". In simplicity, this means that if you are not the owner of the private key, then you are not the owner of the funds that are stored on the e-wallet. Although Bitcoin is mentioned in this wise sentence, this is true of virtually all cryptocurrencies.

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We do not claim that every company that manages cryptocurrencies plans to rob its clients, nor, of course, do we say so about exchange platforms. The problem is that you are exposed to a similar risk at all and that the company you trust in this way does not have all the cards in its hands. Cryptopia exchange clients were also convinced of this. According to current information, their (now former) employee admitted that he had stolen approximately $ 170,000 worth of digital assets.


During his work in the company, the employee made copies of the private keys of electronic wallets, on which the funds of the exchange's clients were deposited. He then took this information home on a USB flash disc and transferred the cryptocurrencies to his private wallets. According to the report, he stole up to 13 Bitcoins in this way. Another important fact is that in this way he gained access to client funds in a total value exceeding $ 100 million. The theft was revealed only because the exchange went into liquidation after a big hack and the accounting company discovered an irregularity.

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In this case, it is clear how it can turn out if you entrust your cryptocurrencies to someone else. Usually, you can't identify the problem in advance, which is why the best approach is one in which you don't run a similar risk at all. We believe that 2-3 hours of study and understanding of the basic context are the key to the safe use of cryptocurrencies. This avoids solving various unpleasant situations, which can take years and can also lead to a permanent loss of funds.


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