Wallets, keys & self-custody
'Not your keys, not your coins' — a wallet doesn't hold crypto, it holds the keys that authorize moves on the ledger.
> Public vs private keys
A wallet is a keypair. The public key derives your address — safe to share, this is where funds are sent. The private key signs transactions — anyone holding it can spend the funds. Losing it means losing access forever; there is no reset button.
> Seed phrases
Most wallets encode the private key as a 12- or 24-word 'seed phrase'. That phrase can regenerate every address and key in the wallet. Write it down offline, in multiple locations, and never store it in a screenshot, cloud drive, or password manager synced across the internet.
> Hot vs cold storage
A hot wallet lives on an internet-connected device — convenient, higher risk. A cold wallet (hardware device, paper backup) is kept offline — inconvenient, dramatically safer. The industry rule of thumb: hot for spending money, cold for savings.