A private key is the most important part of a crypto wallet because it gives you full control over your money.

In cryptocurrency, crypto ownership is not proven with your name, email or any form of ID. It is proven with a private key.

If you have the private key, you own the crypto and if you lose it, you lose access to your funds permanently. In other words, you do not fully control your money if you don’t control your private keys. 

In this article, we will explore what private keys are and  how they work, how wallets generate them, how they are different from public keys and wallet addresses and how to store them safely.

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What Is a Private Key in a Crypto Wallet? 

A private key is your access code to cryptocurrency ownership and transaction approval.

It is a secret alphanumeric code that verifies your control over blockchain assets, protects them from unauthorized access and is crucial for security. It is the only way to prove and verify that you are the true owner of the cryptocurrency you want to access. 

A private key allows you to:

  • Prove ownership of crypto in a wallet
  • Sign and approve transactions
  • Send crypto to another wallet

What Does A Private Key Look Like? Crypto Private Key Example

what can someone do with your crypto private key

A private key is a long string of letters and numbers that acts like a secret password for your crypto wallet.

In Bitcoin and other cryptocurrencies, a private key is originally a 256-bit number. The format is too complex for anyone to read or use directly so it is displayed in a simpler hexadecimal form. It may look something like this: 5KJvsngHeMpm884xE9J9…

You do not need to memorize or type it out. Your wallet software handles it for you. What matters is what the private key does. So what does a private key do?

How Does A Private Key in Crypto Work?

A private key proves that you are the rightful owner of the crypto in your wallet. When you send crypto, your wallet uses your private key to create a digital signature.

This signature confirms that you approved the transaction. The blockchain then checks the signature. If it is valid, the transaction goes through.

It’s important to note that coins are stored in the blockchain and not your crypto wallet.

It is your key that is stored in your wallet. Although it is not necessary to store keys in your wallet, adequate security measures must be taken to ensure it is safe at all times. 

You should know that although private keys never leave the blockchain network, you must never share yours.

Anyone who gets access to your private key can move your funds without your permission. Also, sharing it will defeat the entire purpose of encryption and security. 

Every private key has a corresponding public key that is safe to share, as the name implies.

It is used to receive funds from other users. While it is easy to derive a public key from a private one, the reverse is quite impossible. How do you get a private key then?

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How to Find Your Private Keys in a Crypto Wallet

how do i find my private keys in crypto

A private key is the most important piece of information in any crypto wallet. It is what gives you full control over your funds. If someone else gets access to your private key, they can move your crypto without your permission.

Because of this, most modern wallets do not display private keys by default. Instead, they protect users by using recovery phrases and encryption. How (and if) you can find a private key depends on the type of wallet you’re using.

Important First: You Usually Don’t “Find” a Private Key

In most cases, you are not meant to casually view your private key.

  • Wallets are designed to hide private keys for security
  • What users are given instead is a recovery phrase (seed phrase)
  • That recovery phrase can be used to regenerate private keys if needed

If a website or app claims it can “find” or “recover” your private key for you, it is almost always a scam.

1. Finding Private Keys in Non-Custodial Wallets

Non-custodial wallets are wallets where you control the keys, not a company.

Examples include software wallets and hardware wallets.

In these wallets:

  • The private key is generated when the wallet is created
  • It is stored securely on your device or hardware
  • You may be able to export it manually, depending on the wallet

Typical process:

  1. Open the wallet app
  2. Go to Settings or Security
  3. Look for options like Export Private Key or Advanced Settings
  4. Enter your password or biometric verification
  5. The wallet may display the private key for a specific address

Some wallets only allow exporting individual address private keys, not the master key.

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2. Using the Recovery Phrase Instead of the Private Key

Most wallets prefer users to rely on a 12-word or 24-word recovery phrase.

This phrase:

  • Is created when the wallet is first set up
  • Can restore the entire wallet on another device
  • Can regenerate all associated private keys

If you still have your recovery phrase:

  • You don’t need to manually find your private key
  • Restoring the wallet automatically recreates it

If you lose both the wallet access and the recovery phrase, the private keys cannot be recovered.

3. Hardware Wallets and Private Keys

Hardware wallets are designed so that private keys:

  • Never leave the device
  • Are never shown on a screen or copied as text
  • Are used internally to sign transactions

With hardware wallets:

  • You cannot directly view the private key
  • You use the device to approve transactions instead
  • The recovery phrase is the only backup

This design significantly reduces the risk of theft.

4. Custodial Wallets and Exchanges

If you use an exchange or custodial wallet:

  • You do not have access to the private keys
  • The platform controls them on your behalf

This means:

  • You cannot find or export private keys
  • You rely on the platform’s security
  • Access is tied to your account login, not a key

This is why the phrase “not your keys, not your crypto” is common in crypto discussions.

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5. When You Should Never Look for Your Private Key

You should avoid exposing your private key if:

  • Your wallet is working normally
  • You only need to send or receive crypto
  • You are being asked for it by a third party

No legitimate service will ever ask for your private key.

Why Protecting Your Private Key Matters

Anyone with access to your private key can:

  • Transfer your funds
  • Import your wallet elsewhere
  • Permanently take control of your crypto

Once funds are moved using a private key, transactions cannot be reversed.

Key Takeaway

You don’t usually “find” a private key in a crypto wallet. Instead:

  • You secure your recovery phrase
  • You protect wallet access with passwords and biometrics
  • You only export private keys if absolutely necessary

Understanding this difference is essential for staying safe in crypto.

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What Is the Purpose of a Private Key?

what is an example of a crypto private key

A private key is the most important piece of information in any crypto wallet because it proves that you own the funds associated with that wallet. Its main purpose is to authorize transactions on the blockchain.

Whenever you send cryptocurrency, your wallet uses the private key to digitally sign the transaction, proving to the network that you are the rightful owner of the funds and giving you exclusive control over them.

Without the private key, no one, including you, can move the crypto, making it both a security tool and the key to access your assets.

Beyond authorizing transactions, a private key also serves as a security measure. It ensures that only the person who holds the key can spend or transfer the cryptocurrency.

This is why private keys are never shared publicly and are often stored in encrypted formats or protected by wallets with passwords, PINs, or hardware devices.

Essentially, the private key acts as both a password and a signature, proving ownership and granting permission to access funds.

Private keys also enable users to restore access to their wallet if needed. Through a recovery phrase or seed phrase, the private key can be regenerated, ensuring that even if a device is lost or damaged, the user can still access their crypto.

This highlights another crucial purpose: private keys are the foundation of self-custody in cryptocurrency, giving users full control without relying on third parties like banks or exchanges.

In short, the purpose of a private key is threefold: to prove ownership, authorize transactions, and secure access to cryptocurrency.

Protecting it is essential, because anyone with your private key can control your funds, and losing it means losing access permanently.

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What can Someone do with your Private Keys?

Think of your private key as the literal “master key” to your digital vault. In the world of crypto, whoever holds the key owns the assets. If someone else gets their hands on it, they don’t just have a copy of your funds, they have total control over them.

Here is exactly what someone can do if they obtain your private key:

1. Instant Transfer of Funds

The most immediate risk is that they can send all your cryptocurrency to a wallet they control. Because blockchain transactions are irreversible, once that “Send” button is hit, there is no bank manager or customer support line to call to get your money back.

2. Spend Your Assets

If your key is linked to a wallet that interacts with Decentralized Finance (DeFi) platforms, an attacker can:

  • Swap your tokens for other assets.
  • Stake your coins to earn rewards for themselves.
  • Use your holdings as collateral to take out loans.

3. Sign Malicious Transactions

A private key is used to “sign” transactions, proving you are the owner. With it, a hacker can authorize smart contracts to drain any future deposits you make or interact with dApps (decentralized apps) in your name.

4. Full Identity/Wallet Impersonation

On the blockchain, your private key is your identity. Someone with your key can:

  • Access any NFTs you own.
  • Vote in DAO (Decentralized Autonomous Organization) governance.
  • Claim any airdrops or rewards tied to that specific wallet address.

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Private Keys vs Public Keys vs Wallet Addresses

These three terms are often used together in crypto conversations, which is why many beginners mix them up. While they are closely connected, they serve very different purposes. Understanding the difference between private keys, public keys and wallet addresses is important for using crypto safely and confidently.

As mentioned, a private key is the most important and sensitive part of a crypto wallet. It is a secret piece of information that proves ownership of the funds in a wallet.

Your private key is used to sign and approve transactions on the blockchain, confirming that you are the real owner sending the crypto. Because of this, a private key must never be shared with anyone. Anyone who gets access to it can move your funds without your permission. 

A public key is generated from the private key using cryptography. Unlike a private key, a public key can be shared safely. It is used by the blockchain to verify that a transaction was signed by the correct private key, without revealing the private key itself. In simple terms, the public key helps confirm ownership without exposing your secret.

A good way to liken a public key is like your bank account number. It identifies your account, but it cannot be used to withdraw money.

A wallet address is a shorter, more user-friendly version derived from the public key. This is the address you share with others when you want to receive crypto. Wallet addresses are designed to be public and safe to share, which is why they are commonly used for payments and transfers. 

To summarize the difference simply, the private key controls the funds, the public key helps verify ownership, and the wallet address is used to receive crypto. If someone has your wallet address, they can only send you crypto. If someone has your private key, they can take everything in the wallet.

This simple comparison table makes it clearer:

Item What it does Can it be shared?
Private Key Controls and authorizes transactions No
Public Key Verifies ownership on the blockchain Yes
Wallet Address  Receives crypto payments Yes

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How to Store and Protect Your Private Keys Safely

To use crypto safely and without hassles, you should store and protect your private keys. Here’s how to safely do this: 

1. Write down your seed phrase offline

Always write your seed phrase on paper and store it somewhere safe. Do not save it on your phone, email or cloud storage. Phones can be hacked and emails can be compromised.

2. Avoid screenshots

Never screenshot your seed phrase or private key. Screenshots are often backed up automatically to cloud storage without you realizing it. This is one of the most common ways people lose their crypto.

3. Use hardware wallets for large amounts

If you hold a lot of crypto, consider using a hardware wallet. Hardware wallets store private keys offline and are not connected to the internet.
They are also one of the safest options available as they protect your funds from online attacks.

4. Make multiple backups

Have more than one copy of your seed phrase and store them in different physical locations. It should be somewhere only you or trusted people can access.

  1. Never share your private key or seed phrase

No real crypto company will ever ask for your private key or seed phrase. If someone asks for it, it is most likely a scam. Support agents and online giveaways also don’t require it. Once it is shared, your funds are gone.

Common mistakes to avoid

There are several mistakes people make while using crypto that you should avoid. They include: 

  • Sending seed phrases to “support” on social media
  • Connecting wallets to unknown websites
  • Downloading fake wallet apps
  • Storing keys in plain text files

Always double-check URLs and apps before connecting your wallet.

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Conclusion on Private Keys & How to Find Them

Private keys are the foundation of crypto ownership. They give you full control but they also come with full responsibility.

If you understand how private keys work and how to protect them, you are already ahead of many crypto users. Remember that security is not optional so you should protect your seed phrase, keep your private keys safe and stay cautious online. 

Frequently Asked Questions on Private Keys in Crypto

How do I get a Private Key for Crypto?

The crypto wallet you use automatically generates a private key for you.

What can someone do with your Crypto Private Key?

Anyone with access to your private key can fully control your wallet. They can send, spend or transfer all the cryptocurrency in it without your permission. 

What are the Disadvantages of a Private Key?

The biggest disadvantage of a private key is that it comes with full responsibility. If your private key is lost, stolen or compromised, you permanently lose control over everything it protects. 

What happens when you Lose your Private Keys?

If you lose your private keys, you permanently lose access to your cryptocurrency. There is no way to recover it, and no one can help restore access without the key.

Author

  • Grace nwadike

    Grace is a technical writer with over 5 years of experience. She has a background in Education, Literary Arts and Content marketing.

    At Breet, she helps make crypto easy for everyone to understand. When she’s not writing, she’s watching documentaries or reading a good thriller.