Generates and stores your private keys
Posted: Wed May 21, 2025 4:54 am
Where are Private Keys Stored?
Your private keys are stored locally by you, in what's called a Bitcoin wallet. A wallet is not a physical place where Bitcoin is stored (Bitcoin exists only as entries on the blockchain); rather, it's a software application or hardware device that:
Manages your Bitcoin addresses.
Allows you to create and digitally sign bithumb database transactions using your private key (without revealing the private key to the network).
Broadcasts these signed transactions to the Bitcoin network for inclusion in the blockchain.
Common ways private keys are stored:
Hardware Wallets (Cold Storage): Physical devices (like Ledger, Trezor) that store private keys offline, offering the highest security against online threats.
Software Wallets (Hot Wallets): Applications on your computer or smartphone (e.g., Electrum, Exodus, mobile apps). These are "hot" because they are connected to the internet and are more convenient but slightly less secure than cold storage.
Your private keys are stored locally by you, in what's called a Bitcoin wallet. A wallet is not a physical place where Bitcoin is stored (Bitcoin exists only as entries on the blockchain); rather, it's a software application or hardware device that:
Manages your Bitcoin addresses.
Allows you to create and digitally sign bithumb database transactions using your private key (without revealing the private key to the network).
Broadcasts these signed transactions to the Bitcoin network for inclusion in the blockchain.
Common ways private keys are stored:
Hardware Wallets (Cold Storage): Physical devices (like Ledger, Trezor) that store private keys offline, offering the highest security against online threats.
Software Wallets (Hot Wallets): Applications on your computer or smartphone (e.g., Electrum, Exodus, mobile apps). These are "hot" because they are connected to the internet and are more convenient but slightly less secure than cold storage.