Skin cysts (sebaceous cysts) are small sacs of tissue formed under the skin as they get filled with soft protein called keratin. Most cysts are non-cancerous and will not require treatment, unless of course, they become painful and start to leak or bother you.
Cysts are commonly caused by clogged up sebaceous glands or infection. They are also not painful unless they become inflamed or infected. The best way to deal with inflamed cysts is by draining the fluid to ease the symptoms. Surgical removal is another option if they are really bothering you.
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