How it works
A public key or derived address can be shared for receiving assets. A private key authorizes transactions and should remain secret because control of it can be enough to move assets.
What to check
Check how a wallet generates, stores and backs up keys. Custodial platforms may hold keys on a user's behalf, while self-custody shifts that responsibility to the user.
- Keep private keys secret
- Understand who controls the keys
- Use a tested recovery method
Limits and risks
Losing a private key can permanently remove access, while exposing it can allow an attacker to move assets. There is usually no central authority that can simply reset it.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.