When it comes to crypto wallets, users can keep their private keys on another device or have them stored on a third-party service like a wallet provider. But what if you’re an average person and don’t want your private keys to leave your computer? In that case, you might be interested in using a public key instead of a private key for your Bitcoin wallet. Read on to learn the difference between public and private Bitcoin keys.
What is a Bitcoin Key?
A Bitcoin key is the unique identifier that makes your Bitcoins exist. You can think of it as your digital cash with a 32-character string printed on a printed piece of paper, called a paper wallet, or printed on a piece of software. The private key that controls your Bitcoin account is what’s called a “private key” or “wallet key.” The public key is the one that everyone can see, called a “public key.”
What Is the Difference Between a Public and Private Bitcoin Key?
The most significant difference between a public and private key is that with a public Bitcoin key, anyone can access your account. But the private Bitcoin key is what controls your account, and it’s what you want everyone to see.
Therefore, when someone has your public Bitcoin key, they can easily access your account, and that person can withdraw or send Bitcoin to any number of addresses associated with your Bitcoin account. However, there are some additional benefits to using a public Bitcoin key instead of a private Bitcoin key for your account.
One benefit of using a public Bitcoin key is that you make your private key visible to the world. Therefore, if someone else has your public Bitcoin key, they can easily access your account, withdraw your funds, and send money to any number of addresses associated with your public key.
Another benefit of using a public Bitcoin key is that it’s much easier to secure your account when you have a lot of money stored in it. Remember, your private key is what makes you money, and having it on a public key lets people easily steal your money without your knowledge.
How To Determine Which Bitcoin Key To Use
There are different options when it comes to using Bitcoin keys. For example, you might want to hold a small amount of Bitcoin so that you can take advantage of price increases if they occur, or you might want to buy in when the price is low and sell when it’s high.
Other than that, you may want to invest in Bitcoin that’s expected to appreciate its value, while also holding a small amount of the crypto for safety. In these cases, you can easily determine whether you need a public or private Bitcoin key for your account.