Understanding wallets is essential for crypto security. Here's what you need to know.
What is a Crypto Wallet?
A crypto wallet doesn't store cryptocurrency—it stores the private keys that prove you own crypto on the blockchain.
Hot Wallets vs Cold Wallets
Hot Wallets (Connected to Internet)
- Browser extensions (MetaMask)
- Mobile apps (Trust Wallet)
- Desktop applications
- Exchange accounts
Convenient but less secure.
Cold Wallets (Offline)
- Hardware wallets (Ledger, Trezor)
- Paper wallets
- Air-gapped computers
Most secure for long-term storage.
Custodial vs Non-Custodial
Custodial: Someone else holds your keys (exchanges)
Non-custodial: You control your keys (personal wallets)
Remember: Not your keys, not your crypto.
Choosing a Wallet
- Large holdings: Hardware wallet
- DeFi usage: MetaMask + hardware wallet
- Trading: Exchange (small amounts only)