Lesson 5
What is a Wallet?
Store crypto safely – hot & cold wallets
A crypto wallet is your digital wallet for cryptocurrencies. It stores the private keys that give you access to your coins.
Important: your coins are not "in" the wallet – they live on the blockchain. The wallet only holds the key that unlocks them.
Hot wallets are connected to the internet (apps, browser extensions, exchanges) – convenient but more vulnerable to hackers. Cold wallets are offline (hardware wallets like Ledger) – safer but less convenient.
Golden rule: use hot wallets only for small amounts and store larger sums in a cold wallet. Never store your seed phrase digitally.