GlossaryBeginner
Wallet
A tool that stores the keys needed to access and manage your cryptocurrency.
A cryptocurrency wallet doesn't store coins the way a physical wallet stores cash. Instead, it stores the cryptographic keys that prove ownership of assets recorded on a blockchain and lets you authorize transactions.
Wallets come in different forms, including software applications on a phone or computer, and dedicated hardware devices. The right choice depends on how a person balances convenience against security for their own use. See Kaavon's "Custodial Wallet" and "Non-Custodial Wallet" glossary definitions for who actually controls those keys, and "Hardware Wallet" and "Seed Phrase" for a common way to secure them and back them up.
Examples
- A mobile wallet app lets a user view their balances and send transactions from their phone.
- A hardware wallet keeps private keys on a physical device that is kept offline for added security.