Private Key is a piece of confidential data that proves that you are the owner of a cryptocurrency. It is also known as a “secret key”.
Unlike the “public key” which is open to the outside world, this information is known only to the owner of the cryptocurrency and is managed and stored within the wallet.
In a Bitcoin transaction, the following two keys are required in the signature.
- A “private key” that is known only to the individual who owns it.
- A “public key” that is disclosed to the outside world.
This private key plays a role similar to that of a PIN in a bank or credit card.
Therefore, if the private key is known to a third party, the cryptocurrency owned by the third party can be sent freely, so it is necessary to keep it in strict confidence.
Also, if you lose your private key, you will not be able to use the cryptocurrency you own, so be careful.