Every Bitcoin wallet comes with two types of keys: A public key and a private key. A public key identifies a Bitcoin sender or recipient. This key is in the public domain, and it can be distributed to other users in the Bitcoin network. A private key is used in conjunction with the public key to generate a memorable message signature. Unlike the public key that can be shared, a private key must be kept private at all times. In-Depth knowledge of private keys can help you secure your funds and prevent hackers from stealing your Bitcoins. With this outline, these are fundamental aspects you should know about private keys:
If someone gets your private keys, they can steal your Bitcoins
The Bitcoin network accepts any authentic transaction with a matching signature. That means if someone knows the exact combination of your private keys, they can log into your Bitcoin wallet and transfer your Bitcoins. Hackers can use communication channels or storage media to harness your private keys; which is why you have to take extreme caution when transmitting or storing your private keys. Online wallets are prone to hacks, so the best way to get around this issue is to use a two-factor authentication process.
Bitcoin wallet private keys consist of numbers
Well, the fact that private keys are just numbers can be a frightening prospect. You may think that hackers can easily figure it out. While it’s just a number, it’s a combination of infinite numbers. And because of the importance of private keys and the need to keep them secret, they are normally encrypted, which makes it harder for even the savviest hacker to figure them out.
Bitcoin private keys are made up of digital signatures
Each Bitcoin transaction comes with a digital signature to prevent forgery. Like a private key, a digital signature is a combination of numbers. The sophistication of the number combination is the reason why it’s impossible to fake a digital signature.
The security of your Bitcoin wallet relies on choosing the best private key
You only need to know your private key to use the Bitcoins in your wallet. That’s why private keys should be seriously guarded. However, if you choose private keys carelessly, you could lose your Bitcoins easily.
A private key is one of the most important things when looking to invest in Bitcoin. It’s like your bank account number. Therefore, you should be careful when choosing one and when using it to push through transactions. Any exposure and all your Bitcoin is gone.