Keys Test Day - Annual Celebration

Keys Test Day - Annual Celebration

keep your private keys insurance is essential to ensure financial independence. Unfortunately, many cryptocurrency investors leave their money only on exchanges. This practice is far from being safe, as the exchanges have full control over Cryptocurrency deposits. We'll see below about “Day of Proof of Keys” (Proof of Keys Day).

Since the early days of Bitcoin, billions have been lost due to hacker attacks and fraud. The crypto-asset broker's invasion Mt. Gox in 2014 it is one of the most famous and controversial cases and is still being investigated.

Keys Proof Day - Proof of Keys Day

But what does all this have to do with the day of the “Test of the Keys”?

What is Keys Testing Day?

The idea of proof of keys was created by Trace Mayer, a podecaster and investor in Crypto. He created the concept as an annual celebration aimed at encouraging the investors in digital currency to regain their monetary autonomy.

 

 

As discussed earlier, many people leave their Cryptocurrencies stored in exchanges. This is dangerous as these bags have full control over the private keys of their storage addresses.

In this context, the Keys Proof Day helps to avoid investors' dependence on the storage of their Cryptocurrencies on the stock exchanges. The thought is presented with a short but effective sentence: “no keys, no Bitcoin”.

The first Day of the Keys Test was on January 3, 2019 — the 10th anniversary of the mining of the Bitcoin network's genesis block.

In other words, Keys Test Day celebrates financial sovereignty. Its purpose is to encourage crypto currency investors to move their funds from stock exchanges to their personal wallets. By taking full control of their own private keys, they ensure that no one but themselves can access their funds.

There are several types of Cryptocurrency wallets. However, hardware wallets are generally the best choice as they are by far the most secure way to store private keys.

Four Important Consequences of Key Test Day

The philosophy behind Keys Test Day aligns perfectly with that of Bitcoin. By replacing intermediaries and third parties with an unreliable value transfer system, users can safely cooperate with each other—without giving up their monetary autonomy.

So what are the most important consequences of Keys Test Day?

Teach New Investors How to Move Their Currencies

Cryptocurrency investors should feel free to move them from one place to another. While this may sound simple to some, newcomers often find it difficult to understand the many types of wallets and how they are used.

As such, Proof of Keys Day encourages investors to learn more about the different types of Cryptocurrency portfolios and to practice using them. The Proof of Keys Day also serves as a reminder of how value transfer is accomplished in decentralized block networks.

Reminding investors that they do have their private keys

As mentioned, the main mission established by Trace Mayer in creating the Commemorative Day of Keys Test Day was to encourage all digital currency investors to have full control over their private keys. Leaving your Cryptocurrencies on an exchange means that investors have no control over their funds.

Even though the event only takes place once a year, Keys Proof Day is an opportunity for every investor to take control of their funds. While the event is a good reminder, it means very little if investors can't really secure what's theirs.

Expose Dishonest Brokers

Financial institutions are known to practice what is known as fractional reserve banking. Essentially, it's a way for institutions to leverage their existing deposits by borrowing more money than they actually have. Unfortunately, this entails risks for depositors, as a “bank run” could bankrupt the institution.

In the digital currency space, Key Proof Day could encourage thousands of investors to withdraw their funds from exchanges. If a large percentage of investors decide to do this on the same day, it could expose exchanges that practice fractional reserve methods or that lie about their true reserves.

Fortunately, however, the transparency of Bitcoin networks and other blockchain networks makes it easier for stock exchanges to make their holdings subject to public verification.

Celebrating the Bitcoin Genesis Block

Last but not least, Keys Test Day is a way to celebrate the first block to be mined on the Bitcoin network. This block is known as the genesis block. The genesis block contains the first Bitcoin transaction to be performed, whereby Satoshi Nakamoto sent 50 BTC to Hal Finney.

Another memorable transaction took place on May 22, 2010, when two pizzas were purchased for 10.000 Bitcoin. The episode is now known as Bitcoin pizza day.

How to Participate in the Proof of Keys Movement

It doesn't matter if you're new to crypto coins or a veteran. It's very easy to participate in the Keys Test Day. As mentioned, the idea is to declare financial autonomy by withdrawing all funds from exchanges (or other third-party services).

First, you can take an inventory of all the funds stored in the crypto coin pouches. This will give you an idea of ​​who actually owns your Bitcoins and altcoins.

Then choose a Cryptocurrency wallet that you are comfortable using. In addition to versatility, it is very important to consider the security level of each type of wallet before making your choice. The last step is to send your funds to your personal wallet so you have full control of your private keys.

Some people participate in this movement once a year. They withdraw their funds from the cryptocurrency broker for a day (on January 3rd) to affirm and celebrate their financial sovereignty.

This practice is common among active investors, who need to keep their funds in Cryptocurrency brokerages in order to trade. Then, after the conclusion, they usually transfer the funds back to the brokers. However, long-term investors (HODLers), who do not participate in short-term or medium-term trading, generally keep their funds in a personal portfolio.

Conclusion

Key Proof Day is a simple but important move that reminds Cryptocurrency investors that they do have their private keys. Millions of cryptoactive enthusiasts join in the celebration, transferring their funds from brokers to their personal wallets.

With the growth of the key industry, events such as the Keys Test Day not only will they help educate the community about the importance of private key ownership, but also about general security principles.

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