LESSON 2 — What Is a Crypto Wallet?
Understand hot wallets, cold wallets, and how to stay safe.
Lesson Goal
By the end of this lesson, you’ll understand what a crypto wallet is, the different types of wallets, and how to use them safely.
What Is a Crypto Wallet?
A crypto wallet is a tool that allows you to store, send, receive, and manage cryptocurrency.
It does not store your crypto physically.
Your crypto lives on the blockchain.
The wallet gives you access to it.
A wallet does this by holding your private keys, which prove the crypto belongs to you.
Hot Wallets
Hot wallets are connected to the internet.
They are:
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Easy to set up
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Convenient for daily use
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Common for beginners
Examples include mobile wallets and browser wallets.
Because they are online, they are less secure than cold wallets, but more practical for learning and everyday use.
Cold Wallets
Cold wallets are kept offline.
They are:
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More secure
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Used for long-term storage
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Less convenient for daily transactions
Examples include hardware wallets.
Cold wallets are best for storing larger amounts of crypto you don’t need to access often.
Staying Safe With Wallets
To stay safe:
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Never share your private keys or recovery phrase
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Write your recovery phrase down and store it securely
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Only download wallets from official sources
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Be cautious of links and scams
If someone has your private keys, they control your crypto.
Lesson Complete
You now understand what a crypto wallet is, the difference between hot and cold wallets, and the basics of staying safe.