Private keys are the digital skeleton key to your crypto kingdom. These secret strings of alphanumeric characters prove ownership and grant access to cryptocurrency wallets where coins can be stored, sent, and received. Anyone who has ever owned cryptocurrency knows that private keys are important. But just how important? Because if you lose them or they’re hacked, it’s game over, man. Get ready to stock up on popcorn because this blog will reveal why your private keys are much more important than you think.
What Are Private Keys?
A private key is an alphanumeric passcode that authenticates and verifies ownership of a crypto wallet. Each crypto wallet has a unique private key that is specific only to that particular wallet. These secret strings of characters are either printed or stored electronically to authenticate transactions between wallets. The public key is the wallet address. Anyone can send cryptocurrency to that wallet address. However, only the private key can unlock the wallet and send cryptocurrency out of that online bitcoin wallet. If you lose your private key, you lose access to your wallet. If someone else gets a hold of your private key, they have full access to your wallet and all its contents.
Now that we have understood how effective and essential private keys are; let’s check out another important concept: backing up private keys
Why You Shouldn’t Backup Your Private Key?
As mentioned above, if you lose your private key, you lose access to your crypto wallet. But it gets worse than that. If you store a copy of your private key online, you’re vulnerable to hackers who can steal and use your keys to access your crypto wallet. You’re also opening yourself up to the risk of identity theft. Since hackers can get a copy of your keys and use them to access your online bitcoin wallet, they can also use them to log into your other online accounts. You should also take care to not write down your private keys and leave them in a place where others can see them. You don’t want someone getting a hold of them and accessing your wallet.
3 Safeguards for Protecting Your Private Key
Here are 3 ways to keep your private keys safe and secure so that no one can hack them or access your online bitcoin wallet.
– Store your private keys offline:
Offline storage is the most secure way to protect your private keys and the coins they unlock. With an offline storage solution, hackers and cybercriminals can’t access your private keys because they’re not connected to the internet.
– Use a cold storage wallet:
A cold storage wallet is a physical device that secures your private keys offline. They come in the form of USB drives, paper wallets, and microSD cards.
– Use a hardware wallet:
A hardware wallet is a specialized crypto wallet that’s designed to protect your private keys and digital assets. Hardware wallets come in the form of USB devices, like the TREZOR, or are built into a computer, like the Nano S.
If you follow this advice, your private keys to online bitcoin wallets will stay safe, and you’ll sleep soundly at night knowing that your crypto coins are safe and sound. And there’s one more thing. If you ever lose your private key or forget it, you can use a mechanism called the “forgot password” function to reset your account. Just make sure you remember your login credentials and other information that you provided when you set up your account.