What does “not your keys, not your crypto” mean and why is it important?

The phrase “not your keys, not your crypto” emphasizes the importance of controlling your own private keys – the cryptographic keys that grant access to your cryptocurrency. If your crypto is stored on an exchange or third-party platform, and you do not hold the private keys, you are essentially trusting that platform to safeguard your assets.

If the exchange is hacked, goes bankrupt, or restricts withdrawals, you could lose access to your funds. By holding your own private keys in a secure wallet, you maintain full control and ownership of your cryptocurrency, reducing the risk of loss due to third-party failures.