“Not your keys, not your coins”. This phrase never ring truer for anyone in crypto community. Learn more on seed phrases, private and public key and how to keep your assets safe in crypto verse.
Crypto Wallet: Seed Phrases, Private and Public Key
Crypto wallet is a tool that you use to interact with blockchain networks. The wallet is basically an address that exists in the blockchain network that allows for receiving, sending, and proof of identity within the network. This allows you to participate in the crypto space and use the Defi Apps.
When creating a wallet, 12 random words are generated which will be used to create the address in the blockchain network. The 12 words are sometimes called:
- Seed phrases
- Recovery phrases
- Mnemonic seed of mnemonic phrases
Private keys and public keys are derived from the seed phrases. Private keys are basically your signature, proof that you approve the movement of funds and token ownership in your wallet.
Public keys are the addresses that you shared to people to locate your wallet in the network so that they can transfer funds and tokens to you. It is also a way for people to track your wallet in the network using blockchain explorer such as Etherscan (Ethereum), BscScan (Binance Smart Chain) or PolygonScan (Polygon).
Once the wallet is created, it is very very important for one to keep their seed phrases safe from anyone, this also includes private keys. Both of these give you access to your funds inside the wallet. In blockchain, there are no intermediaries that will help you if you lose your seed phrases and private keys.
The system is designed to give you full autonomy of your fund by removing the middleman, the only autonomy key that you will have is from seed phrases and private keys.
If you lose your access to your wallet in a certain wallet software, you can still use the seed phrases to recreate your wallet in other wallet softwares. This is why many of the wallet software out there provide “import seed phrases” to the users because it allows them to import their existing wallet to their current platform.
DO NOT SHARE YOUR SEED PHRASES OR PRIVATE KEY TO ANYONE.
Legitimate DeFi projects will not ask for your phrases and will only interact with your wallet software such as MetaMask, TrustWallet, etc.
Tips on how to store your seed phrases and private key:
- Write on physical paper and lock it in a safe
- Remember the 12 words phrases by creating a haiku
- Save the text digitally in your hard drive or usb drive
- Divide the seeds phrases to a few parts and scattered it to a few places
Writing the seed phrases is best to be separated from the digital world. This may seem trivial but it has been a recurring case, even from big firms in the space. Stakehound lost almost 70M usd worth of ETH because they lost their private key.
Just as we said just now, in the blockchain world, there is no way of getting those ETH anymore as the private key is lost and that fund may very well remain unmoved for eternity. So be sure to take this action and remember it very well.
- Recovery phrases is a collection of random 12 words that are used to access and recover cryptocurrency wallets in the blockchain network.
- Public and private keys are generated from the recovery phrases.
- Private key is your signature. You use it to approve transactions of crypto assets in your wallet.
- Public key is your wallet address in the blockchain network. You share it to people who will send you crypto assets.
- Wallets created in one blockchain will NOT work in another blockchain. It will only interact with tokens created in the same blockchain network.
What do you think about owning your own asset in crypto verse using wallet?