Wallet
A digital tool that stores cryptographic keys, allowing users to manage and control their cryptocurrency and NFTs.
Last Updated
2026-03-29
Related Concepts
What is Wallet?
A cryptocurrency wallet is a tool that stores private keys and enables users to send, receive, and manage digital assets. The wallet does not store the assets themselves the blockchain does.
The wallet stores the keys that prove ownership.
How does Wallet work?
- A wallet generates a private key and derives a public address from it.
- Others send funds to your address; you authorize outgoing transactions by signing with your private key.
- Hot wallets store keys on internet-connected devices for convenience.
- Cold wallets store keys offline for maximum security.
Why does Wallet matter?
Wallets are the gateway to self-custody. With a non-custodial wallet, only you control your assets.
With a custodial wallet, the provider controls the keys and can freeze or lose your funds.
Key features of Wallet
- Stores and manages private keys
- Signs transactions to authorize transfers
- Hot wallets are convenient; cold wallets are more secure
- Self-custodial wallets require the user to protect the seed phrase
Examples of Wallet
MetaMask is the standard hot wallet for Ethereum and dApp interactions. Ledger is the leading hardware cold wallet for long-term storage.
Phantom is the dominant wallet for Solana.