Private Key
A secret cryptographic code, typically a 256-bit number, that proves ownership of cryptocurrency and authorizes transactions. The private key is mathematically linked to a public key through elliptic curve cryptography — it can generate the public key, but the public key cannot reverse-derive the private key. Anyone with access to a private key has complete, irrevocable control over the associated funds.
“If someone obtains your private key, they can steal all your cryptocurrency with no way to reverse the transactions. Never share your private key with anyone or store it digitally in plain text.”
Public Key
A cryptographic code derived mathematically from a private key that can be shared publicly without compromising security. Public keys are used to generate wallet addresses (via hashing) and to verify digital signatures, confirming that a transaction was authorized by the corresponding private key holder.
Seed Phrase (Recovery Phrase)
A series of 12 to 24 words, generated following the BIP-39 standard, that serves as the master backup for a cryptocurrency wallet. The seed phrase deterministically derives all private keys and addresses in a wallet, meaning anyone with the phrase can fully restore the wallet on any compatible device. Losing the seed phrase means permanently losing access to the funds.
Wallet
A software application or hardware device that stores the cryptographic private keys needed to access and manage cryptocurrency holdings. Despite the name, wallets don't actually store crypto — the assets exist on the blockchain. The wallet stores the keys that prove ownership and authorize transactions. Wallets can be hot (internet-connected) or cold (offline).
Address
A unique string of alphanumeric characters derived from a public key that serves as a destination for sending and receiving cryptocurrency. Addresses function similarly to bank account numbers but are pseudonymous rather than tied to a real-world identity.