What did you hear about private key? Discover what it is below:
What is a private key?
A private key, also known as a secret key or unique personal key, is a set of variables in cryptography that is used with an algorithm to encrypt and decrypt personal data used to authorized and decrypt data.
In a simple term
A private key wallet–also known as a non-custodial wallet–is like having a locked mailbox that only you and you alone can access.
But unlike a regular mailbox which had one physical key, the “key” in a private key wallet is a string of random words called a “seed phrase.”
Why private key wallet important?
With a private key wallet, you have a “mailbox” (address) on a blockchain –> that is not publicly linked to your name or residence or personal details unlike some crypto exchanges–where you can send and receive crypto. No KYC.
Aside the fact that only you have the key to this “mailbox,” you can give the public address to anyone you want to send you crypto.
Who has the keys to your crypto?
Having a private key wallet gives you total control over your personal funds, it comes with the responsibility of keeping your keys very safe. And I mean very very safe. This is the origin of the popular crypto phrase “not your keys, not your crypto.”
With a real private mailbox, if anyone has the public address and the key, they can steal your mail and it’s the same with a private key wallet.
If anyone knows the public address of your wallet and has your private key, they can steal your funds. And you know how devastating this can be
Benefits of a private key wallet
The topmost benefit is security.
While the post office can open up mailboxes as they can, there's one major difference between that and your private key wallet: With your private key only you and you alone can access with your private key except if you have leaked it.
Simply put, with a private key wallet, nobody has access to or control of your funds unless they have your seed phrase. Which they cannot have except you kept it where it is not safe.
What you can do with your private key wallet
You can use your Private Key Wallet to:
• Send to and receive from any external address.
• Swap to and from popular cryptos.
• Send to, and receive from, your Trading Account.
• Connect to decentralized. apps (dApps) on iOS and Android.
Wow, this is a most simplified explanation, thank you for this.
I understand it better now
Am glad you understood it.
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