Part 5/11:
“Any large sum should be kept in a cold storage wallet; hot wallets are for spending small amounts, not long-term savings.”
The Anatomy of a Wallet: Keys, Addresses, and Transactions
Private and Public Keys
Private Key: A secret number that allows you to spend your Bitcoin.
Public Key: Derived from the private key; used to generate your wallet address for receiving funds.
“Think of the public key as the padlock, and the private key as the key to unlock that lock.”
UTXOs Explained
Unspent Transaction Outputs (UTXOs) are the individual chunks of Bitcoin associated with your wallet’s addresses. When you receive Bitcoin, it appears as UTXOs stored across various blocks.