What are Public Keys and Private Keys

Beginner

2m March 30, 2023

Public and private keys are essential components of the cryptocurrency ecosystem. They are strings of numbers and letters and are used to encrypt or decrypt data. They function as a pair to facilitate secure user transactions.

The public key can be thought of as the mailing address for a vault, while the private key is the physical key to that vault. To receive cryptocurrency assets from others, you must share your mailing address (public key) so they know where to send the assets. The private key is used to open the vault and access the assets. It grants you the authority to send cryptocurrencies to others.

Many wallet providers convert the private key into an easier-to-remember format to enhance user-friendliness, typically a string of 12 to 24 words, which is often referred to as a "seed phrase" or "secret recovery phrase" (SRP).

You should NEVER share your private key or seed phrase (secret recovery phrase) with anyone under any circumstances. Whoever gains control of the private key has complete access to the wallet and can dispose of assets at will, such as transferring them to his own account.