Crypto Wallets

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6 Jun 2025

Wallets 👛

👜 What Is a Crypto Wallet?

A crypto wallet is a digital tool that lets you store and use your cryptocurrency — like Bitcoin, Ethereum, etc.
But unlike your physical wallet, it doesn’t hold coins.
Instead, it holds the keys to access your coins on the blockchain.

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🧠 Real-World Analogy:

Think of the blockchain as a huge online vault where all crypto lives.
Your wallet is the key to unlock your portion of that vault.

Lose the key? You lose your crypto.
No “forgot password” button. 🫠

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🔑 What’s Actually Stored in a Wallet?

There are 2 important things:

Public Key = your address (like your email). Anyone can send you crypto using this.
Private Key = your password (like the key to a safe). Only you should know this. It gives full access to your funds.

Your crypto lives on the blockchain, but your wallet controls the access to it via these keys.

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🧰 Types of Wallets

Hot Wallets 🔥 (Connected to internet):

Apps or browser extensions (like MetaMask or Trust Wallet).
Easy to use, great for beginners
Risk: If your device is hacked, your funds can be stolen.

Cold Wallets ❄️ (Offline storage):

Hardware devices (like Ledger or Trezor).
Not connected to the internet = super secure.
Best for long-term holders (aka “HODLers”).

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📲 Example:

You download Trust Wallet.
You write down 12 secret words (called a seed phrase).
That seed phrase = your private key in disguise.
Lose it? You’re locked out forever.
Anyone else gets it? They can steal everything.

This is why crypto says:
“Not your keys, not your coins.”

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🛑 Bonus Terms to Know:

Seed Phrase: A human-readable backup of your wallet (usually 12 or 24 words). Protect this with your life.
Custodial Wallet: A company (like Coinbase) controls your keys — easier, but you give up control.
Non-Custodial Wallet: You control the keys — true crypto freedom, but it comes with responsibility.

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