Crypto wallet
Software or a device that holds the private keys giving access to crypto-assets.
You hold keys, not tokens
Crypto-assets stay on the blockchain; a wallet holds the private key that lets you spend them. Whoever holds the key holds the funds. The 12 or 24-word recovery phrase recreates the key: lose it and you lose access; disclose it and you give everything away.
Custodial or self-custody
On a platform, the platform holds the keys: simple, but you are its creditor. In self-custody, with an app or a hardware wallet, you alone are responsible. FTX’s collapse in November 2022 recalled the saying: not your keys, not your coins.
Common mistakes
- Photographing your recovery phrase or storing it in an online service.
- Typing your phrase on a site that asks for it: no legitimate service does.
Questions and answers
What is a hardware wallet?
A small device that keeps the private key offline and signs transactions without exposing it to the computer.
Notitia newsroom · education, not investment advice.