Understanding Cryptographic Keys
Private and public keys are the foundation of cryptocurrency security. They work together as a cryptographic pair that enables secure transactions without revealing sensitive information.
Private Key
Your secret password that controls your crypto
- • Must be kept absolutely secret
- • Used to sign transactions
- • Proves ownership of funds
- • Cannot be recovered if lost
Public Key
Your public address that others can see
- • Safe to share publicly
- • Used to receive payments
- • Verifies digital signatures
- • Derived from private key
How They Work Together
Think of your private key as your signature and your public key as a way for others to verify that signature. When you send cryptocurrency, you sign the transaction with your private key, and the network uses your public key to verify the signature is authentic.
Why This Matters for Security
Understanding keys is crucial because "not your keys, not your crypto." If someone else controls your private keys (like an exchange), they control your cryptocurrency. This is why self-custody wallets are important for true ownership.
Security Best Practices
- • Never share your private key with anyone
- • Store backup copies in multiple secure locations
- • Use hardware wallets for large amounts
- • Double-check addresses before sending