A wallet does not literally hold coins, which live on the blockchain. It holds the private keys that prove ownership and authorise transfers. Lose the keys and you lose access; expose them and funds can be stolen.
Wallets range from convenient online "hot" wallets to offline "cold" hardware devices. The phrase "not your keys, not your coins" captures why holding your own keys matters.
What Is a Crypto Wallet? Keys, Not Coins
Key takeaways
- A wallet stores your keys, while the coins stay on the blockchain.
- Custodial wallets are run by a company; non-custodial ones are yours alone.
- Losing your keys or seed phrase usually means losing the funds for good.
Wallet — häufig gestellte Fragen
Does a wallet hold my coins?
No. It holds the keys that let you move coins that actually live on the blockchain.
Which wallet type should a beginner use?
Many start with a reputable custodial exchange for buying, then move longer-term holdings to self-custody as they learn.
This definition is educational and not financial advice. Crypto is volatile and high-risk — always do your own research.
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