A crypto wallet is a tool that lets you store, send, and receive cryptocurrencies like Bitcoin, Ethereum, or XRP. It doesn’t actually hold your coins physically. Instead, it stores the private keys that give you access to your digital assets on the blockchain.

Custodial vs Non-Custodial Wallets

1. Custodial Wallets (e.g. Coinbase, Binance)
   • A third party (like an exchange) holds your crypto and manages your private keys.
   • Easier for beginners but less control.
2. Non-Custodial Wallets (e.g. MetaMask, Xaman, Ledger)
   • You hold the keys. No one else can access your funds.
   • Offers full control, but also full responsibility. If you lose your keys, you lose all of your assets. You cannot get them back.

Hot vs Cold Wallets

• Hot Wallets are connected to the internet (e.g. mobile apps, browser extensions).
  • Easy to use for trading and interacting with DeFi apps
  • Higher risk of hacks if not protected
• Cold Wallets are offline (e.g. hardware wallets like Ledger or Trezor).
  • Ideal for long-term storage and security
  • Not as convenient for frequent transactions

In order to sign transactions with a cold wallet, you have to connect it to a browser wallet. But doing this does not compromise the security of the cold wallet.

What Can You Do with a Crypto Wallet?

• Send and receive crypto safely
• Access DeFi apps and earn interest on assets
• Swap tokens across networks like Ethereum, Solana, or XRPL
• Hold NFTs and collectibles
• Bridge assets between chains

Why It Matters

If you're serious about crypto, owning a wallet is essential for self-custody, security, and freedom. It’s your passport to Web3.