NYKNYC stands for "Not Your Keys, Not Your Coins," a phrase popularized by Andreas Antonopoulos, a well-known advocate and educator in the cryptocurrency space. This saying underscores the importance of holding and controlling your own private keys when dealing with cryptocurrencies.
In the world of crypto, private keys are what give you access to your funds on the blockchain. If you control the private keys, you have full control over your cryptocurrency. However, if you store your crypto on an exchange or with a third-party service, that service holds the private keys on your behalf. This means that you don’t actually have direct control over your funds—they do.
The phrase "Not Your Keys, Not Your Coins," coined by Antonopoulos, serves as a critical reminder: if someone else controls your private keys, they effectively control your coins. If an exchange gets hacked, goes bankrupt, or decides to freeze accounts, you could lose access to your funds. To truly own your cryptocurrency and keep it safe, it's recommended to store your private keys in a personal wallet, such as a hardware wallet or a secure software wallet, where only you have access to them.
To know if you own your private keys, you should check whether your wallet provided you with a 12 or 24-word phrase when you set it up. This phrase is known as the mnemonic phrase, seed phrase, or backup phrase. Most wallets will prompt you to write down this phrase during the installation process.
If you were asked to note down this phrase, it means you have control over your private keys. You can double-check this by looking for an option in your wallet that allows you to view or manage the seed phrase. If such an option exists, it confirms that you own the keys.
It's crucial to securely store your seed phrase in a safe place because it’s the key to accessing your funds. Losing this phrase could mean losing access to your cryptocurrency, so it's important to keep it protected and never share it with anyone.
