Crypto glossary
Private key
A private key is a secret number that proves ownership of crypto funds and signs transactions; whoever holds it controls the assets.
A private key is a very large random number, typically 256 bits, from which a wallet's public key and addresses are derived. Signing a transaction with it is the only way to move the funds those addresses hold, and the network accepts any validly signed transaction without asking who sent it.
That makes the private key the asset itself: if it is lost, the coins are unrecoverable, and if it is stolen, the thief can drain the wallet with no bank to reverse the transfer. Most modern wallets generate their keys from a seed phrase, so backing up that phrase backs up every key.
Phishing sites, malware and fake support agents routinely try to obtain private keys. No legitimate wallet, exchange or project will ever ask for one.
Example
If a user pastes their private key into a website promising an airdrop, an attacker can import it into their own wallet and transfer every token out within seconds.
Related terms
Latest articles on Private key
- Crypto Trader Loses $200K After Telegram Bot Allegedly Exposes Private Keys
- The Importance of Possessing the Private Keys of your Cryptocurrencies
- Huobi Wallet’s New ‘Cloud Wallet’ Feature Removes the Need for Private Keys
- Ethereum: A hacker steals ETH worth $ 7.8 million by successfully calculating weak private keys
- Backup Encrypted Private keys on Google Drive and iCloud with Coinbase Wallet
