A crypto wallet is a tool that stores the keys used to access and manage your cryptocurrency, rather than holding the coins themselves directly.
A crypto wallet is software or hardware that stores your private and public keys, letting you send, receive, and manage cryptocurrency. The coins themselves live on the blockchain; the wallet holds the keys that prove ownership.
Wallets come in two broad types. Hot wallets are connected to the internet and convenient for frequent use, while cold wallets, such as hardware devices, stay offline for stronger security.
There is also a custody distinction. With a self-custody wallet, you alone control the keys and bear full responsibility. With a custodial wallet, a third party like an exchange holds the keys for you.
Whoever controls the private keys controls the funds, which is why the phrase "not your keys, not your coins" is a core principle of crypto self-custody.
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