Crypto Wallet

Crypto & Digital Assets
Updated Apr 2026

Software or hardware that stores the private and public keys needed to interact with a blockchain.

What is Crypto Wallet?

A cryptocurrency wallet is a tool — either software or physical hardware — that stores the cryptographic keys necessary to send and receive cryptocurrency on a blockchain. Crucially, a crypto wallet does not actually 'hold' coins the way a physical wallet holds cash; the coins always reside on the blockchain. What the wallet stores are the private key (proof of ownership and authorization to spend) and the public key (the address to which others send funds). Wallets are broadly categorized as hot wallets (internet-connected, convenient) or cold wallets (offline, more secure). They are further divided into custodial wallets — where a third party such as an exchange holds the keys — and non-custodial wallets, where the user alone controls the keys.

Example

Example

A MetaMask browser extension is a hot, non-custodial software wallet. The user holds their own private key as a 12-word seed phrase. If the user loses that seed phrase, access to their funds is permanently lost because no company or server stores it on their behalf.

Source: Investopedia — Crypto Wallet