What Exactly is a Private Key?

A private key is a secret code that proves ownership of a cryptocurrency address.

In simpler terms, it’s like the master password for your crypto.

When you create a crypto wallet, it generates one or more private keys – typically, long strings of letters and numbers – which allow you to unlock and spend the coins associated with that wallet. Anyone with the private key can access the funds, so it must be kept absolutely secret.

Think of is as a key to a safe deposit box: it controls access to whatever is inside (your crypto). The wallet software uses your private key to digitally sign transactions when you send crypto, proving that you’re authorized to spend those funds. Without the private key, you can’t access or move the crypto – which is why losing it means losing your money.

To make private keys a bit more intuitive, many wallets create a related public key from the private key. The public key is then turned into your wallet’s address (the string you share to receive crypto). You can think of the public address as your bank account number – it’s safe to share so people can send you money, but it doesn’t give them control. The private key, in this analogy, is like the PIN or password to the account – you never share it. The public and private keys are mathematically linked (the public is derived from the private), but no one can figure out your private key from the public key.

This one-way relationship ensures you can safely give out your address without risking your funds.

A private key is your proof of ownership and access to your crypto. If a stranger obtains your private key, they effectively become the owner of the crypto in that wallet.

If you lose your private key (and have no backup), you lose access to your own funds. This is why protecting private keys is the number-one rule of crypto security.

What Is a Recovery Phrase (Seed Phrase)?

Managing long complex private keys can be cumbersome – you wouldn’t want to have to memorize or safely store a 64-character string for every new address you use.

This is where recovery phrases (also known as seed phrases) come in.

A recovery phrase is a human-readable backup for all your private keys.

A recovery phrase is typically a sequence of 12, 18, or 24 simple words (usually in English, unrelated to each other) generated by your wallet. Those words, when put together in the correct order, contain all the information needed to restore your wallet and its private keys.

In essence, the recovery phrase is like a master key – it can regenerate your entire wallet’s keys if you import it into a compatible wallet app.

For example, a wallet might give you a 12-word phrase like: “timber – sword – where – noodle – joy – eagle – admit – tuna – vibrant – museum – gossip – river.” This might look like nonsense, but it’s a coded representation of your wallet’s private keys. If you later lose your phone or delete the wallet app, you can reinstall the app, input these 12 words, and voilà – your wallet (and all its addresses and crypto balances) will be restored.

Recovery phrases are also called seed phrases, backup phrases or mnemonic phrases – all these terms mean the same thing.

The reason it’s “mnemonic” (which means aiding memory) is that words are easier for humans to safely record and recall. Remember that your recovery phrase is as powerful as all your private keys combined. Anyone with that phrase can recreate your keys and access your funds.

Many beginner-friendly wallets, including DB Cherry, will emphasize the importance of writing down your recovery phrase during setup. This is because the recovery phrase is your backup. Unlike a password reset in traditional apps, if you lose access to your crypto wallet (say you forget a PIN or your device dies), the only way back in is using that recovery phrase. Think of it as the master backup code for your crypto.

Why Keeping Your Keys and Phrase Safe Is Crucial

Private keys and recovery phrases are literally the keys to your kingdom (your crypto holdings). Treat them like high-value items, because they are. The security of your crypto depends 100% on how well you protect these keys.

Here’s why you must guard them carefully:

• If someone obtains your private key or recovery phrase, they can steal all your crypto. This is not an exaggeration. With just those 12-24 words or the raw private key, a thief can generate your wallet on their device and drain the funds within minutes. Unfortunately, crypto transactions are irreversible, so there’s usually no getting it back. This is why no legitimate support person or service will ever ask you for your private key or seed phrase – if someone is asking, it’s a scam. Never share them.
• If you lose your only copy of the private key/recovery phrase, you lose access to your crypto forever. There is no “forgot my password” option in a decentralized wallet. The blockchain has no customer support. As devastating as it sounds, if you didn’t back up your keys or phrase and you lose them, your funds are essentially gone – nobody (not even the wallet company) can help, because the network has no other way to know you’re the owner without the key. Many people have lost significant amounts by failing to back up their seed phrase properly. It’s a painful lesson, but one that can be easily avoided by making backups in advance.

How to Protect Your Private Keys and Recovery Phrase

Now that we know how vital these secrets are, let’s go over some best practices to protect them. By following these tips, you can greatly minimize the risk of losing your funds.

• Never share your private key or recovery phrase with anyone. No trustworthy entity will require your private keys or 12-word phrase. Be extremely skeptical of anyone or any website asking for them – even if they claim to be “support” or a wallet recovery service. Scammers often impersonate customer service to trick users into divulging their keys. Keep it to yourself.
• Back up your recovery phrase by hand, not digitally. The safest way to store a seed phrase is to write it down by hand on paper or engrave it on a metal backup device, and store it somewhere secure (like a fireproof safe). By doing this, you ensure it’s offline and immune to hackers. Do not take a screenshot, photo or save the phrase in a phone note or cloud drive. Digital copies can be found by malware or hackers. It may feel old-school, but physical backups are far safer.
• Use multiple backups if possible: It’s okay (even wise) to have two or three written copies of your recovery phrase stored in separate locations. For example, one in a home safe and one in a safety deposit box. This way, if one copy is destroyed or inaccessible, you have a spare.
• Secure the device or environment where your wallet is. If you use a mobile wallet app (with self-custody), set a strong PIN or password on the app if it allows. Also secure your phone itself, so that if someone gets your phone, they still can’t get into the wallet app easily. Keep your wallet app updated to the latest version so you have the latest security coverage.
• Consider a hardware wallet for large amounts. For beginners with small amounts, a mobile or hosted wallet is fine. But as you earn more crypto, you may consider transferring the bulk of your funds to a hardware wallet. Hardware wallets keep your private keys offline entirely, adding an extra layer of protection. They are immune to online viruses and scams. You do need to securely store the device and its backup phrase, but many find the peace of mind worth it for significant amounts.
• When using DB Cherry or similar wallets: If your wallet is custodial (the company holds keys), focus on securing your account (strong password, 2FA, etc.) because the platform will handle the keys. If your wallet is non-custodial (you hold keys), follow all the above steps to back up your phrase. Make sure to follow the app’s backup instructions carefully.
• Be mindful of phishing traps targeting keys: Never enter your recovery phrase on any website or form just because someone told you to. For instance, if you ever need to restore your wallet, you’ll do that only within a trusted wallet app itself. Scammers sometimes create fake wallet websites or apps that prompt you to input your seed phrase – which they then use to steal your funds. Always ensure you’re using the official app or interface when dealing with your keys.

By following these precautions, you dramatically reduce the risk of losing your crypto. It might seem like extra work, but think of it as learning to safeguard a new kind of asset. Just as you wouldn’t leave wads of cash lying around or give strangers your bank PIN, you’ll get into the habit of guarding your crypto keys.

Key Takeaways

• A private key is your all-access pass to your crypto funds – keep it secret at all times.
• A recovery phrase is a human-friendly backup of your keys. Write it down and lock it away safely - it’s your disaster recovery plan.
• If someone else gets your keys or phrase, your money is effectively theirs. If you lose them, your money is gone for good. Treat them with utmost care.
• Use the best practices (offline backups, no digital copies, no sharing, secure devices) to ensure you maintain sole control of your crypto. This way, you can confidently use crypto without fear of accidents or hacks.
• DB Cherry Tip: DB Cherry’s wallet is designed to give you full control in a secure way. If you ever have questions about securing your wallet or using recovery phrases, check out DB Cherry’s support resources.

We want you to feel safe and empowered as you venture into crypto.

With this knowledge, you can use your crypto wallet with confidence, knowing how to keep your assets safe.