Technical Definition

Wallet

Software or hardware that stores your private keys and lets you sign transactions.

By Crypto University Editorial
BlockchainTransactionWallet

✦ Key Insight

Choosing between a custodial account and a self-custody wallet is the single biggest security decision most people make in crypto.

✕ Common Misconceptions

Storing the seed phrase as a photo, note or cloud backup. Also assuming uninstalling the app deletes the funds — the keys, not the app, control access.

Detailed Explanation

A wallet does not hold coins — the coins are entries on the blockchain. The wallet holds the keys that prove those entries are yours. Losing the wallet app is recoverable if you have the seed phrase; losing the seed phrase is not.

In Practice

“You install a wallet, write the twelve words on paper, and can restore the same balances on a new phone months later using only those words.”

Dig Deeper

Wallet

Software or hardware that stores your private keys and lets you sign transactions.

Token

An asset created by a smart contract on an existing blockchain rather than being that blockchain's native currency.

Blockchain

A shared, append-only record of transactions maintained by many independent computers at once.

Transaction

A blockchain transaction is a signed or authorized instruction that changes blockchain state or transfers value when accepted by the network.