Your public key is like your bank account number—you can share it so people can send you crypto. Your private key is like your password—it must be kept secret and never shared.
Private / Public Key is a pair of mathematically linked cryptographic keys that form the basis of cryptocurrency security.
Think of a Public Key as your bank account number. It's safe to share with others because they can only use it to send you funds. It is a long, unique string of characters that is generated from a wallet's private key.
The Private Key is like the PIN or password to your bank account. It is a unique string of characters that should be kept secret at all times. The private key is used to sign transactions and authorize the movement of funds from your wallet. Because the private key is mathematically linked to the public key, anyone can verify that a transaction was signed by the rightful owner of the wallet without knowing the secret key itself.
Understanding the difference between these two keys is essential for self-custody in Web3. Losing your private key means you lose access to all your funds. If your private key is compromised, a malicious actor can steal all your funds without your permission. Unlike a bank, there is no customer support to help you recover your funds. This is why it is so crucial to keep your private key secure, ideally in a hot-cold-wallet or a mnemonic-phrase.
A hot wallet is connected to the internet, like an app on your phone. A cold wallet is an offline device, like a special USB stick, that is more secure.
A special list of 12-24 words that is the master key to your crypto wallet. It's the only way to recover your wallet if you lose it.
Short for "multi-signature." It's a type of wallet that requires more than one private key to approve a transaction, making it very secure.
