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The Secrets of Bitcoin Wallets and Private KeysA private key is a secure code that enables the holder to make cryptocurrency transactions and prove ownership of their holdings. Bitcoin keys. A private key is simply your way of saying �This address is mine, and I have access to it� Coins are stored on the blockchain and not within your private key. A private key is like a password � a string of letters and numbers � that allows you to access and manage your crypto funds. When you first buy cryptocurrency.