Part 05: Understanding Cryptocurrency Wallets

What is a Cryptocurrency Wallet?

Despite the name, a cryptocurrency wallet doesn't actually store your cryptocurrency. Instead:

Your cryptocurrency exists on the blockchain Your wallet stores your private keys These keys prove you own the cryptocurrency The wallet provides an interface to interact with the blockchain

• Think of it like this: Your bank account doesn't hold physical cash.
• It's just a record showing you own a certain amount.
• Your debit card and PIN let you access that money.
• Similarly, the blockchain records your balance, and your wallet (with your private keys) lets you access and spend it.

The Golden Rule of Cryptocurrency

"Not your keys, not your coins."

• This phrase is repeated constantly in the cryptocurrency community because it's so important.
• If you don't control your private keys, you don't truly control your cryptocurrency.
• Someone else does.