Crypto Basics 1 min read
Crypto Wallet
Also known as: Crypto Wallet, Hot Wallet, Cold Wallet
Software or hardware that stores your private keys and lets you sign transactions on a blockchain.
Hot vs cold
- Hot wallet — connected to the internet (mobile app, browser extension like MetaMask). Convenient for daily use, higher attack surface.
- Cold wallet — offline device (Ledger, Trezor, air-gapped machine). Slower to use, far safer for long-term holdings.
Custodial vs self-custodial
- Custodial — an exchange or broker holds the keys for you (Binance, Coinbase). Not your keys, not your coins.
- Self-custodial — you hold the keys yourself. Maximum sovereignty, maximum responsibility.
Security basics
- Write your seed phrase on paper or metal, never in a cloud note.
- Use a hardware wallet for anything you can't afford to lose.
- Treat every DM asking for your seed as a scam — because it is.
Frequently asked
Does my wallet hold my coins?
No. Coins live on the blockchain. Your wallet holds the private key that authorizes moving them.
What is a seed phrase?
A 12 or 24 word backup of your private key. Anyone with the phrase controls the wallet — never store it online, never share it.