When you hear the word wallet, you probably picture something that holds cash or cards (like the thumbnail🫢). A crypto wallet works differently — it doesn’t actually store coins. Instead, it stores the keys you need to access your cryptocurrency on the blockchain.

Every crypto wallet gives you two things: a public key, which works like your address (others use it to send you crypto), and a private key, which is like your password. That private key is what proves you own your crypto. And just like a real password, if someone else gets it — or you lose it — your money could disappear forever.

There are two main types of wallets: hot wallets and cold wallets. Hot wallets are connected to the internet. They’re easy to use, fast to set up, and great for beginners. Apps like MetaMask or Trust Wallet let you send, receive, and interact with crypto in just a few taps. The trade-off is that, because they’re online, they’re more exposed to hackers or phishing attacks if you're not careful.

Cold wallets, on the other hand, are offline. They come in the form of hardware devices like Ledger or Trezor, and they’re used mostly by people who want to hold large amounts of crypto for a long time without touching it. Since they aren’t connected to the internet, they’re far harder to hack — but a bit less convenient for daily use.

Another major difference is whether the wallet is custodial or non-custodial. Custodial wallets, like those offered by crypto exchanges (Binance, Coinbase, etc.), manage your private keys for you. They’re easier to use but mean you're trusting a third party to protect your funds. Non-custodial wallets give you full control, but that also means full responsibility — there's no “forgot password” option.

No matter which wallet you choose, security is key. Always back up your seed phrase (a list of 12–24 words that recover your wallet), never share it with anyone, and be cautious of fake apps or links.

In the crypto world, your wallet is more than just a place to store money — it’s your identity, your bank, and your key to everything from NFTs to decentralized apps. Learning how wallets work is one of the most important steps to becoming confident in the space.