Wallet

A wallet is software or hardware that stores the cryptographic keys controlling your cryptocurrency and lets you send, receive, and manage it. Despite the name, a wallet does not actually contain coins — the coins exist as entries on the blockchain, and the wallet holds the private keys that prove ownership and authorize transfers, along with the addresses others use to pay you.

Wallets come in several forms. Software wallets are apps on your phone or computer, such as MetaMask for Ethereum; they are convenient but connected to the internet. Hardware wallets, such as a Ledger or Trezor device, keep keys on a dedicated offline gadget and sign transactions without exposing the keys — a safer choice for larger holdings. Custodial wallets, like the balance in an exchange account, mean a company holds the keys for you. For example, a beginner might buy bitcoin on an exchange (custodial), then withdraw it to a hardware wallet they control for long-term storage.

A common misconception is that deleting a wallet app or losing a device destroys your crypto; as long as you have the seed phrase — the backup list of words generated at setup — you can restore access from any compatible wallet, because the funds live on the blockchain, not in the app. Conversely, anyone who obtains your seed phrase or private keys can take everything, which is why they must never be shared.