Private Key

The crypto space’s equivalent of a password.

A private key is the password or passcode to a crypto user’s wallet. This password is composed of a complex and random string of alphanumeric characters and is used by the user to generate addresses for receiving transactions or to send and approve transactions. Moreover, this key is paired with a public key that is shared with other users and serves as the wallet address.

Private keys are very important assets in and of themselves. Losing one’s private key is the same as losing access to the wallet. As a result, blockchain networks and exchange platforms usually make provisions such as paper wallets and seed phrases to provide an extra layer of safety against the loss of private keys.