Summary “No keys, no coins” means that you must possess the associated private key of your funds. Only the person who has the private key can decide how to use the associated cryptocurrency - if you don’t control the private key, then you are entrusting your cryptocurrency to a third party. If you truly own your private key, you have complete control over the use of your funds. Owning the private key also means being responsible for its security - our device is designed for this purpose.

What is “Your Private Key”?

Similar to a bank account, cryptocurrency is sent to a receiving address, technically known as a public key. When others send you Bitcoin, it goes to your public key. The public key is so named because sharing it with anyone does not affect the cryptocurrency.

However, the public key is associated with another key - the private key. This key is absolutely crucial. Anyone who obtains the private key can access the funds on the associated public key. Simply put, the private key is like a password - a way to verify if you are the true owner. When we say “no keys, no coins,” we are referring to your private key.

The Difference Between Access and Ownership

When withdrawing from an exchange, you’ll notice that withdrawal of your cryptocurrency requires the exchange's approval and there’s a daily limit. This indicates that even though the coins are visible in your account, they are actually stored in the exchange's wallet. If the exchange faces security issues, you might not be able to withdraw your coins. In other words, when your coins are on a centralized platform like an exchange, they don’t truly belong to you.

Why is it Important to Own Your Keys?

Money is hard-earned, and if stored on a centralized platform, the platform decides how you can use it. Moreover, if the centralized platform encounters any technical issues, you essentially lose access to your cryptocurrency. In short: as long as you don’t own the keys, you don’t have financial freedom, and your funds are still at the mercy of others.

Most importantly, you cannot control the security of the platform’s system - you are outsourcing the security of your cryptocurrency to them. Unfortunately, over the years, major hacker attacks have resulted in the theft of cryptocurrencies worth up to 2 billion USD.

The situation is entirely different if you own the private key. By owning the private key, you set the rules. No one else can tell you what you can or cannot do with your own cryptocurrency. By controlling your own keys, you truly own your coins and can enjoy financial freedom.

However, controlling your own keys also comes with an important responsibility: You must ensure that you are the sole possessor of these private keys. If someone else manages to get your private key, they can access and take away your cryptocurrency.

UnionKey: Key, Coin, NFT, Security

High Security: UnionKey uses a hardware cold wallet approach, storing the private key in an offline encrypted chip, away from online threats. This physical isolation makes it difficult for hackers to obtain users' private keys, thereby protecting the security of their digital assets.

Transparency of Open Source Code: UnionKey’s code is open source, allowing anyone to review and verify it. This transparency increases users' trust in the wallet's security and also promotes community participation and maintenance.