Thread by @RobotDefi

Hey newbs.
Quick question.
You've heard the phrase "not your keys, not your crypto" right?

But do you know what that really means?

Let's talk about it.

🧵/1

Obvi the phrase refers to your private keys to your crypto. And if you don't have them, or own them, then you don't own the crypto. Right?

Kinda like how when you buy #crypto on Robinhood or PayPal, you can't transfer it out. You can only buy and sell.

🧵/2

Well that's part of it, yes.
But it doesn't just refer to those specific instances.
When you keep your crypto in a CEX, you don't have sole access to it either.

I mean, sure, you can send it out, but if it's in there, the CEX can bar access to it...

🧵/3

...or reverse trades.

We've recently learned Coinbase can freeze your account, and they've reversed trades of $LUNA.

Ok, ok, obviously we're talking about if you have your crypto in your MetaMask...then you're good.

...right?

🧵/4

Yes...but maybe not for the reason you think.

See, if your funds are in a centralized exchange (if they are even there at all) then you can be blocked from access.

So obviously a DeFi wallet is the answer. But you may be asking "well what if MetaMask freezes your wallet?"

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OR, "what if Infura, MetaMask's node provider, decides not to service your area (like they were accused of doing in Nigeria) therefore making MetaMask not work there?"

Then you have your keys but you don't have your crypto...right?

WRONG

🧵/6

Let's take a trip down history lane for a moment
All of this amazing #DeFi wonderfulness comes from something called #Bitcoin Improvement Proposal 39 (BIP-39)

This was the proposal, adopted in 2013, to use a random set of numbers to produce a set of words (seed phrase).

🧵/7

The seed phrase would then be used to create a "deterministic wallet."

The tech on it is pretty fascinating, but it has since become the standard for all DeFi wallets.

Why is this important?

🧵/8

Because it means you can use any DeFi wallet app to recover your crypto as long as you have your seed phrase.

They're interoperable with each other through the seed phrase!
So long as the wallet supports the network your crypto is on, you can get to it.

🧵/9

THIS is why your seed phrase is so important.
And why you should never ever EVER give it to anyone, or input it in any site or app that isn't the wallet app you're trying to use.

Hope you found this educational.

CHEERS!

🧵/finis