Understanding private and public keys

While trading crypto, you might come across the terms "public key” and “private key” as ways to safely manage your crypto. You can correctly assume from their names that they are two different kinds of “keys” that serve different purposes. Here, we will take a look at how public and private keys are different from each other, but also how they’re both connected.

Let’s start with public keys. A public key is basically another term to refer to your crypto wallet address. Your public key (or wallet address) is shared publicly so that others can send crypto your way. To see your wallet address on Rain, you can simply navigate to your preferred crypto and click Receive. This way you will be able to view and copy your public key to share.

On the other hand, private keys are the opposite when it comes to their access. A private key is a secret code that only you have access to. It is the code used to access, manage, and send your crypto from your wallet. An important note about private keys is that they must never be shared with anyone. While public keys are publicly shared with everyone, private keys should be saved in hardware wallets or cold storage, to prevent your crypto funds from being compromised.

But how are public keys and private keys connected? The answer to this question is found in what is called “cryptographic security,” which is a feature that both types of keys share. Cryptographic security simply means the way mathematics and codes are used to keep information safe. While you can use your public key to send or receive crypto, only your private key can “unlock” or approve a transaction tied to your public key.

In short, understanding how public and private keys work is essential to managing your crypto safely. Both keys work together to keep your funds secure, so by protecting your private key and sharing only your public key, you can confidently benefit from the transparency and security of the blockchain.