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What is a crypto wallet? Hot vs. cold wallets explained.

Most people think a crypto wallet stores your coins. It does not. Here is what it actually does.

We are breaking down how crypto wallets work, the difference between hot and cold storage, and what the risks really are in our blog post.

A crypto wallet stores your private key, not your coins. Your coins live on the blockchain. The private key is the master credential that proves you own the assets at a given address and authorises every transaction you make. This is where the phrase "not your keys, not your coins" comes from.

Hot wallets are connected to the internet, fast and convenient, but exposed to online threats. Cold wallets store your private key completely offline, removing the remote attack surface entirely. A practical approach many holders use: cold storage for long-term holdings, a hot wallet for active use with smaller amounts.

In the full article, we also cover what a seed phrase is and why losing it means losing your funds, what no wallet actually protects you against, and how MPC is changing key management for institutions and consumers.

Full breakdown in the blog:

What is a crypto wallet? Hot vs. cold wallets explained Learn what a crypto wallet actually stores, how hot and cold wallets differ, and which type fits your needs — beginner-friendly guide with security facts.