Private key

A private key is a secret code that gives you access to crypto in a crypto wallet. You can use this code to approve transactions.

What is a private key?

A private key is used to create a digital signature. That signature proves that you’re allowed to make a transaction, such as sending crypto.

Whoever has your private key can manage the crypto associated with it. So never share this code with anyone. Someone who gets it may be able to send your crypto.

A private key is linked to a public key. The public key can be shared publicly and helps the network check whether a transaction was signed correctly. Your private key stays secret.

An example of a private key

You have crypto in a crypto wallet and want to send some to a friend. The wallet uses your private key to sign the transaction.

The network can then check whether the signature is valid. Your private key doesn’t have to be made public. This is similar to a PIN: you use it yourself, but don’t give it to others.

Why is a private key important in crypto?

A private key determines who can send crypto from a wallet. That’s why you’ll often see this term in articles about crypto wallets, theft, or security.

With a non-custodial wallet, you manage the private key yourself. A seed phrase, also called a recovery phrase, can restore your wallet and keys. So keep it safe too, and never share it.

Legitimate companies won’t ask for your private key or seed phrase. A request like that is almost always phishing, an attempt to steal your crypto.