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What is a crypto wallet

A crypto wallet is a tool that allows users to store, send, and receive cryptocurrency.

The private keys managed by a wallet provide access to funds on the blockchain. The wallet itself may be a browser extension, a mobile or desktop application, or a hardware device such as Ledger.

The wallet’s role depends on the selected digital asset storage model. A provider controls the keys in custodial storage. The user controls them in a non-custodial model.

How a crypto wallet works​

Every wallet contains two types of cryptographic keys:

  • public key
  • private key

The public key is used to receive funds, while the private key is used to sign transactions.

Private keys must never be shared, because anyone who has access to them can control the associated crypto assets.

A seed phrase can restore the key set of a compatible non-custodial wallet, so it requires the same level of confidentiality as the private key.

Types of crypto wallets​

Hot wallets​

Hot wallets are connected to the internet and are commonly used for everyday transactions.

Cold wallets​

Cold wallets store private keys offline and provide a higher level of security.

Examples of crypto wallets​

  • Trust Wallet
  • MetaMask
  • Phantom
  • TronLink
  • Ledger
  • Trezor
  • SafePal

FAQ​

Can you lose cryptocurrency?​

Yes. If you lose your private key, access to your funds may be permanently lost.

Do crypto wallets work with all blockchains?​

Many wallets support multiple blockchains, but compatibility depends on the specific wallet.