Part 03: Public and Private Keys Explained
Understanding keys is crucial to understanding cryptocurrency security. Let's use a simple analogy.
The Mailbox Analogy
Your Public Key = Your Mailing Address
You can share this with anyone People use it to send you things (cryptocurrency) It's visible to everyone Example: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa
Your Private Key = The Key to Your Mailbox
Only you should have this It allows you to access and send what's in your mailbox If someone else gets this, they can take everything NEVER share this with anyone Example: A 64-character string like: 5Kb8kLf9zgWQnogidDA76MzPL6TsZZY36hWXMssSzNydYXYB9KF
How Keys Work Together
Someone wants to send you cryptocurrency They use your public key (like your mailing address) as the destination The transaction is recorded on the blockchain You use your private key to prove you own those funds and can spend them
- Critical Security Point: Your private key is everything.
- If you lose it, you lose access to your cryptocurrency forever.
- If someone else gets it, they can steal all your funds.
- This is why cryptocurrency security is so important.