Wallets and keys

How crypto is held, sent and lost, and what a seed phrase really is.

11 guides, in reading order

What is a crypto wallet and how does it work?A crypto wallet is an app or device that stores the secret keys controlling your coins. The coins themselves stay on the blockchain.2 min read
Hot wallet vs cold walletA hot wallet keeps its keys on an internet-connected device. A cold wallet keeps them offline, which is safer from hackers but slower to use.2 min read
What is a private key?A private key is a long secret number that proves ownership of crypto and authorizes spending. Anyone who learns it can take the funds.2 min read
What is a seed phrase?A seed phrase is a list of 12 or 24 words that backs up a crypto wallet. Anyone who has the words can take everything in it.2 min read
What is a wallet address?A wallet address is a string of letters and numbers that identifies where crypto is sent, much like a bank account number.2 min read
Custodial vs non-custodial walletsWith a custodial wallet a company holds the keys to your crypto. With a non-custodial wallet you hold them, along with all the responsibility.2 min read
What is a hardware wallet?A hardware wallet is a small device that keeps crypto private keys offline and signs transactions without exposing them to a computer.2 min read
Crypto exchange vs wallet: what is the difference?A crypto exchange is a business where you buy, sell and trade. A wallet is a tool that holds the keys to coins you already own.2 min read
How do you send and receive crypto?To receive crypto you share your wallet address. To send it you enter the recipient's address, pick the network, pay a fee and confirm.2 min read
What happens if you lose your seed phrase or private key?In a self-custody wallet there is no reset button. If the seed phrase and the device are both gone, the coins can never be moved.2 min read
What is a multisig wallet?A multisig wallet needs approval from several separate keys before funds can move, so one stolen or lost key is not enough.2 min read