Beginner guide

What is a crypto wallet?

A crypto wallet doesn't actually "hold" coins. Your coins live on a blockchain, a shared public record. A wallet holds the keys that prove you're allowed to move them.

Public address vs. private key

Your public address is like an account number: you can share it so people can send you crypto. Your private key is like the master password: whoever has it controls the funds. Never share it.

The seed phrase

Most wallets give you a seed phrase (usually 12 or 24 words) when you set them up. It can recreate all your keys. Write it on paper, store it safely, and never type it into a website or send it to anyone. Nobody legitimate will ever ask for it.

Custodial vs. self-custody

If you keep crypto on an exchange, the exchange holds the keys for you (a custodial wallet). It's convenient, but you depend on that company. With a self-custody wallet (an app or a hardware device), you hold the keys yourself. It's more control and more responsibility: lose the seed phrase and nobody can recover your funds.

Hot vs. cold

A hot wallet is connected to the internet (phone or browser apps). A cold wallet, such as a hardware wallet, keeps keys offline and is generally safer for larger amounts.

Not financial advice.