🏡 What Is a Crypto Wallet?

A crypto wallet is like your digital purse — it stores the keys to your coins.

Here’s the twist though:
👉 Your crypto doesn’t actually live in the wallet.

Wait, what?

That’s right. Your coins stay on the blockchain.
Your wallet just holds the keys that prove those coins belong to you.

It’s a little like having the password to your online bank account.
The money’s not in your phone — but your login gives you full access.

🧭 So What Does a Wallet Actually Do?

A wallet:

• Stores your private and public keys
• Shows you your balance
• Lets you send and receive crypto
• Keeps your assets secure (depending on the wallet type)

There are different kinds — some live online, others are on a USB-like device. We’ll get to that.

🔢 What Is a Crypto Address?

A wallet address is like your email address, but for crypto.

It’s a string of numbers and letters

You use it to receive and send crypto

Example:

Every time someone sends you crypto, they send it to your address which may look like this (bc1qw4x2wprkwz0kqsn9re) — and only you (with your private key) can move it.

🎒 Types of Wallets at a Glance

• Hot Wallet - Connected to the internet (apps, websites)
• Cold Wallet - Offline (USB device, paper)
• Mobile Wallet - On your phone
• Web Wallet - Browser-based (e.g. exchanges)
• Hardware Wallet - USB-style device

A wallet stores your keys (not coins!)

An address is where people send your crypto

Choose your wallet based on how much security you want. Cold Wallets and Hardware Wallets are best if you want to own and hold a lot of crypto that has a lot of value. Just make sure to always keep your seed phrase safe.

🔐 Custodial vs. Non-Custodial Wallets

The Difference Between Holding Your Crypto… or Letting Someone Else Do It

👩‍💼 What Is a Custodial Wallet?

A custodial wallet is like using a bank.
Someone else (usually an exchange or app) holds your private keys — which means they technically control your crypto.

It’s:

• Easier to use ✅
• Recoverable if you forget your password ✅
• Less secure 🔓 (because you’re trusting a third party)

Popular custodial wallets:

Kraken

Coinbase

Crypto.com

Revolut

Think of it like this:
It’s convenient, but someone else has the spare key to your front door.

🦾 What Is a Non-Custodial Wallet?

A non-custodial wallet puts you in full control.

• Only you have the private keys
• Only you can access the crypto
• If you lose your keys? No one can help 😬

This is the “not your keys, not your crypto” camp.

Popular non-custodial options:

MetaMask

Trust Wallet

Trezor (Hardware)

🧠 Which Should You Use?

Feature

Custodial Wallet: ✅ Very easy to setup, No access to private keys, moderate security, password recovery possible

Non-Custodial Wallet: ❗ Requires setup, access to private keys, high security, password recovery not possible

🧪 The Golden Rule:

If you don’t hold the keys, you don’t own the crypto.

But if you do hold the keys, don’t lose them.

Custodial wallets are easy but involve trust — someone else holds your keys, this is the popular choice for low to medium holdings of crypto

Non-custodial wallets give you full control — but you’re responsible for your security, recommended for large holdings of crypto

Choose based on your confidence level and risk tolerance.

Lets quickly look at what keys actually are.