The implementation of the smart grid (SG) and cyber-physical systems (CPS) greatly enhances the safety, reliability, and efficiency of energy production and distribution. Smart grids rely on smart meters (SMs) in converting the power grids (PGs) in a smart and reliable way. However, the proper operation of these systems needs to protect them against attack attempts and unauthorized entities. In this regard, key-management and authentication mechanisms can play a significant role. In this paper, we shed light on the importance of these mechanisms, clarifying the main efforts presented in the context of the literature. First, we address the main intelligent attacks affecting the SGs. Secondly, the main terms of cryptography are addressed. Thirdly, we summarize the common proposed key-management techniques with a suitable critique showing their pros and cons. Fourth, we introduce the effective paradigms of authentication in the state of the art. Fifth, the common two tools for verifying the security and integrity of protocols are presented. Sixth, the relevant research challenges are addressed to achieve trusted smart grids and protect their SMs against attack manipulations and unauthorized entities with a future vision. Accordingly, this survey can facilitate the efforts exerted by interested researchers in this regard.