The bitcoin cryptocurrency’s key system is crucial because bitcoin is already an open-source system, and if you lost your coins, then there would be no people to support you. The government does not support these currencies that they have no control over, and they also said to use them at your own risk. Suppose you are using the bitcoin, and by mistake, your private key gets shared, and you lose all the bitcoins you had. You cannot sue in court about your loss, and no government will help you get back your coins or refund you. Thus, it is essential to understand the power of the bitcoin wallet’s private key and https://www.fintech-insight.com/.
Bitcoin exchanges with essential accessibility
There are two categories of bitcoin exchanges in the crypto world: centralized and decentralized. The centralized crypto exchanges will not give you access to your bitcoin wallet’s private key because the third party controls your purse. On the other hand, they will support you in case of any mishappening because they have the power to spend and recover your bitcoins. But the limitation is that if the centralized exchange’s information gets leaked through hacking or security bugs, the hacker gets all the private keys of all the wallets on the exchange and can steal the crypto coins. If the exchange mentions the support system in case of hacking, they will refund you. Otherwise, you will lose your bitcoins or other crypto coins.
Two keys to bitcoin cryptocurrency
There are the following two bitcoin crypto keys that help you to receive the bitcoins and send the bitcoin to another wallet given below:
- Public Bitcoin key
- Private bitcoin key
Public bitcoin key
The public bitcoin key is the address of your exchange wallet that you are using for receiving bitcoins into your wallet. When you order something from Amazon or another online shopping platform, you fill in your home or work address for receiving address. The public key is the address like this shopping address for obtaining products or bitcoins. As you can share your home address publicly, and there is no harm or loss in sharing, similarly, you can publicly share the address of your key, and no one can withdraw money from your public key, or no one can hack your wallet with your public key. There is the following example of the public key of your decentralized bitcoin exchange wallet:
1PzLjxXwKR8FyQtqkP1dm36XvoZq4XXXX
Private bitcoin key
Bitcoin private key is also the address you have to keep secret. Unfortunately, if it gets revealed publicly, you would see your wallet as zero because it has the sending power of your bitcoins or crypto through the decentralized exchange. For instance, first, we fill in the shipping details where the products will get shipped, and it is the same as the public key address, but the private key is like the secret password you use to pay online via Google Pay or other online payment application. There is the following example of the secret or private bitcoin address or key given below:
5JhTGVcuP1TCWmBas6jr5x54maZzygvDim38wscjHx4ijXXXXXX
Why should you not share it?
- Would you like to share your ATM pin with another person by holding your ATM card? Not thus, the details on the ATM card are like your public key, and the ATM pin you use for withdrawal is like your private key. Anyone with your bitcoin’s private key withdraws these digital coins from your wallet without getting you the notification because it is a decentralized system. So you should not share it with anyone, and if you want to share it, it depends on you.
- Suppose you are using the decentralized bitcoin wallet and, unfortunately, someone accessed your bitcoin wallet by breaking the security. Now you can see the funds (bitcoins or other crypto coins) inside your purse, but you cannot transfer them to another wallet until you get the secret key you saved outside the wallet. So, it means no one can transfer your digital coins without your consent until you share or someone has access to your secret key.
Conclusion
Both keys are essential for the bitcoin system cycle because without a public address, you cannot let the bitcoins inside your wallet, and without the secret key, you cannot let the bitcoins outside your wallet. So it is very crucial to keep your digital private key in a safe place or offline, so only you can move your digital coins.
