Is another wonderful week and am happy to participate in this task below comes my entry.

My Entry

1.) Explain private and public Keys in relation to custodial and non-custodial wallets.

Private keys are also known as secret keys, they are important keys that are used to decrypt and encrypt data, they are used to access any cryptocurrency account, when private keys are kept safe no hacker can hack ones account or token.

It is also used to withdraw or transfer tokens to different wallets.

Public keys are created from private keys and they are pairs of keys that can be used to unlock coins sent to a wallet, but can never be used in withdrawal.

With this in mind let take about private and public keys in custodial wallets.

Custodial wallets.

In custodial wallet a third party have access to private keys, because custodial wallet is like centralized exchange that works with intermediary.

Features of private keys on custodial wallets.

On custodial wallet because a third party has access to the private key, account owner don't worry about losing his or her private keys because there is a customer service backup.

Hackers can hack the exposed keys and this will lead to loss of tokens, coins and assets.
And the owner of the account will not know how it happened.

Just like banks today use money in there custody to do other businesses with the owners concept, same in custodial wallet, because since you don't have your private keys for yourself technically the money is not yours.

So on custodial wallet private keys are not really private.

Non custodial wallets..

Non custodial wallets which is similar to decentralized exchange are very good.

Because private keys on non custodial wallets are really private, because there is no third party.

Only the owner of the account has access to the private keys ,based on that he performs transactions anytime because he has his private keys.

Hackers find it difficult because the keys are safe, no loss of money or token.

Withdrawal can be done anytime with the private key.

But there are few disadvantages on non custodial wallets.

• There is no customer service backup, once the Keys lost the money or token are gone.
  No one can help you fix the problem because no one has access your private keys..

2.)What do you think about the Proof of Keys Day? What precautions would you take when participating?

Proof of key day is special day,it occurs every 3rd of January, it is similar to bank run, it is a day Bitcoin mining is celebrated.

Just like people withdraw all their money during bank run, so also does investors during proof of key day, they with draw all their tokens.

So that centralized exchange will not claim what do not belong to them.

Personally i think proof of day is very good and advantageous because it allows investors take charge of what rightfully belongs to them.

It also helps them to know who really is in. charge of their private keys.
It also exposes dishonest exchanges, just like bank run leaves the some banks empty so do proof of day keep some exchanges.

It helps new investors to know how to handle thier private keys and how to take full control of there wallets

What precautions would you take when participating?

Before i participate i will take the below precautions:

• If i have plans of moving back my money after proof of key day, i will choose a temporary wallet, so that i wont easily expose my identity.

• Having in mind that proof of day is a wonderful day for hackers, i will be careful not to expose my private keys by storing them in a google document or Microsoft words.

• I will pay attention to my blockchain address as not to make mistakes or use an incorrect address, because some cryptocurrency has similar address format like ETHEREUM and V.CHAIN has a similar address format so any mistake made my token is gone.

• During proof of key day there use to be network congestion so having this at the back of my mind will help me in my transactions that day, but i will carefully monitor my transaction ID as to be sure the transaction is moving to the right destination.

• I have to plan ahead as to the amount of money i will withdraw, the amount i can forgo, and how to avoid further harm by taking more risk.

3.)Do you prefer Centralized exchanges or Decentralized wallets for storing your cryptocurrencies? Why?

As a new investor centralized exchange will be safe because there is a service back up which can be of help.

But not withstanding, i prefer decentralized exchange wallets because of the below reasons;

security

Decentralized exchange wallet is more secured than centralized exchange wallet, there less hackers in decentralized exchange wallets.

Control over my token

In decentralized exchange wallet, i have full authority over my account and tokens and am in charge of my private keys, no authority change freeze my money.

Privacy

On decentralized exchange wallets ,i don't need an intermediary,so am not revealing my data to any other person, and there will be no change of informations.
In conclusion while using a decentralized exchange wallet, i will be observant and more confident to invest more.

5.) In one statement, what is the major significance of the transfers in question

The major importance of transferring steem to our wallets is that, i moves us to invest, it will help me as a New investor known what to do on proof key day.
I will be conversant with cryptocurrency, my private keys and public keys.

conclusion

This lecture was informative and beneficial to me, tho i couldn't perform the transaction because of difficulty in verification in my binance account, but i learned a lot especially as to what non custodial and custodial wallets what they mean.
I also learned the risk of centralized exchange wallets and decentralized exchange wallets.

Thank you proff @awesononso

Cc.
@awesononso