How to send ethereum transactions with java
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In this guide I will introduce you to private keys, their importance inside a cryptocurrency wallet and the reasons why you must back them up securely. I will also be making a recommendation on where to safely store your private keys. As always anything I write is not financial advice and I am simply sharing my experience with private keys and cryptocurrency wallets. A private key is a string of numbers that represent a cryptocurrency inside a wallet.
Below is an example of a fictitious private key:. The role of a private key is to give anyone who knows the private key unrestricted access to the crypto asset Bitcoin, Dash, etherium etc it represents. The private key by definition proves ownership of a crypto asset. In the physical world you use a pen to sign a cheque to authorise payment.
In the cryptoverse the private key is used to sign a transaction and authorise payment. The difference being that the private key is encrypted, not publically visible and authorises the transaction in the background - neither the sender nor the receiver see the private key. For example when you want someone to pay you 0. The majority of mainstream cryptocurrency wallets like Exodus or Jaxx have a seed consisting of at least 12 words.
Whilst this is unlikely, how about if the wallet software stops supporting a particularly cryptocurrency? This happened in when the Exodus wallet stopped supporting Dogecoin. In either of the eventualities I mentioned previously, you would need to move your cryptocurrency assets to different software wallet - the only way to do this is by backing up the private keys and importing them to the new wallet. There are so many different types of wallet, each cryptocurrency has its own wallet and there are wallets that support multiple currencies.
When you export private keys from a wallet, they will normally save in a csv spreadsheet format which can be printed off or saved. My recommendation is to save the exported keys to two or more quality USB memory sticks like the Kingston DataTraveller and put them in separate physical locations in case of fire. When you save the private keys to a USB drive, you must somehow protect the keys from being seen should someone unauthorised get hold of them. I recommend using VeraCrypt , an open source encryption software that runs on Windows, Mac and Linux to do this.
The encryption process uses a master phrase to protect the keys and without this phrase your keys cannot be revealed. I will be writing a how to guide in the future on using VeraCrypt to encrypt your private key backup. Remember with cryptocurrencies there is no bank helpline to call and you are the bank manager! Just like your bank has a system of passwords and memorable phrases to recover your bank account, so to do you need a system to recover your wallets should something happen.
I love helping you manage your cryptocurrency portfolio easily and training you how to use crypto wallets securely. If you need assistance do get in touch. If you like what you have read and are feeling generous, feel free to donate any amount to one of my Crypto public addresses:. Read here to know the importane of keeping your crypto funds safe - https: The importance of a wallet's private keys and how to back them up.
What is a private key? Below is an example of a fictitious private key: What are private keys used for? What is a public address? Why you should backup a private key? How to protect your private key backups When you save the private keys to a USB drive, you must somehow protect the keys from being seen should someone unauthorised get hold of them.
Personally I recommend giving that master phrase to a close friend or relative whom you trust. A very private affair!
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