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Why Should I Backup My Private Keys?

Why Should I Backup My Private Keys?

Before understanding the importance to have a backup of your private keys, you should be aware of the terms public and private keys. These keys are required for crypto assets transaction.

Private Keys vs. Public Keys

Anyone can get unauthorized access to the crypto assets with the help of the private keys. Owning the private key means having the full ownership of the crypto assets that belongs to a particular address. Just like the way your signature works in for the cheque to authorize a payment that you want to make, similarly the private key is used to authorize the crypto payment. However, the private key will be invisible to the public and it will be in an encrypted format.

The public key is the address for crypto assets. You can disclose the public key to anyone you want to make a transaction with. The way your account number facilitates a depositor to deposit money into your account, your public key address is used here by the sender to send you crypto payments.

Why is the backup of the private key important?

Here, if someone has got the private key means that he/she has the access to the crypto assets encrypted to that particular address. So only when you have the private key, you can access the crypto assets of your address and if you lose it, then you will never ever recover your assets back. This can be seen as the bright side and the dark side of owning the crypto assets.

Accidents are unpredictable, and who knows if something goes wrong with your crypto wallet or with the device which you use to access your crypto wallet, then you could get into a big trouble as you won’t get your crypto assets back. Although the crypto wallet providers are giving you an option for retrieving your wallet as of now. what if they also stop providing this support for your wallet or if something wrong happened with your crypto wallet provider itself? So, it is highly recommended that you back up the private keys of your crypto assets which enables you to retrieve your crypto assets in any of the conditions explained above. Your private keys are your crypto assets.

Security measures for storing backed up private keys

Ensuring Security measure for the backed up private keys are equally important like backing up of your private keys. You must store your backed up private keys in a well-secured place where an unauthorized person finds it difficult to trace. If would be much better to break the private keys in parts and store them in different locations to provide higher security. The reason for doing this is, finding all the different parts of that private key and combining them to make the correct combination will really be next to impossible. This way you can ensure the maximum Security to your crypto assets.