Today the growth of cryptocurrency is uncontrollable. However, there are a lot of threats happening in the digital world.
Crypto wallets serve to safeguard your virtual assets from hacking and keep your funds safe if you keep your private key confidential.
The Crypto Wallet allows you to store and manage numerous cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Tron (TRX), Ripple (XRP), and others. The public key and private keys play different functions in the crypto wallet. Using two different keys, you can send and receive cryptocurrency.
A public key is used to receive cryptocurrency from anyone who wishes to transfer their cryptocurrency to your crypto wallet. A public key is a cryptographic code that is paired with a public key. To accept cryptocurrency transactions, you can share a public key with anyone.
Simply private key is like a "password". A person who holds the private key can access the multiple cryptocurrencies linked to the key. If you want to withdraw cryptocurrency, the private key is a mandatory thing to complete the process.
Importance of the Private Key:
Private keys help to protect crypto assets. Leading cryptocurrencies like Bitcoin and Ethereum are decentralized, which means that no bank or government is controlling your funds. Crypto was distributed across the network of computers using blockchain technology.
1. Public keys are paired with private keys to complete the crypto transaction correctly.
2. Everything is happening in the open, so there is no need to provide your personal information to use the cryptocurrencies.
3. Private keys provide a high level of security for cryptocurrency transactions.
4. Private keys verify the ownership of cryptocurrency before the transaction by using the public key.
How to Store a Private Key Safely
Keep your private key somewhere safe to avoid it being lost or stolen. Here are the two basic categories:
Store in a online wallet:
The simplest and most straightforward method of storing your private key in your digital wallet.It is also called the "HOT" wallet. This makes it possible to access the cryptocurrencies anytime, anywhere because the hot wallet is connected to the Internet. Use a top-rated hot wallet with security options like email verification, two-factor authentication, fingerprint authentication, etc.
Store in a offline wallet:
Some investors will not prefer the wallet connected to the internet because of online thefts like hacking. It is called "cold storage." However, it makes cryptocurrency less useful and it creates some risks like physical theft, loss of memory, etc.
