What a wallet really holds
Your coins always live on the blockchain. A wallet holds the private key that proves they belong to you and lets you sign transactions. Anyone who has the key can move the coins, and if the key is lost, the coins are lost too.
Hot wallets
A hot wallet is an app on your phone, computer or browser that is connected to the internet. It is free and convenient for everyday amounts, but because it is online it is more exposed to malware and phishing.
Cold wallets
A cold wallet keeps the keys offline, usually on a small hardware device. Transactions are confirmed on the device itself, so a hacked computer cannot steal the keys. It is the safer choice for savings you do not touch often.
Exchange custody
If you leave coins on an exchange, the exchange holds the keys for you. That is simple, but you depend on its security and solvency. A common rule says: not your keys, not your coins.
The seed phrase
When you create a wallet you receive a seed phrase of 12 or 24 words. It can restore all your keys on a new device. Write it on paper or metal, keep it in a safe place, never photograph it and never type it into a website. No support team will ever ask for it.
Simple checklist
- Small amounts for daily use in a hot wallet, savings in a cold wallet.
- Test with a small transfer before sending large amounts.
- Always check the network (for example Ethereum or Tron) before sending stablecoins.
- Buy hardware wallets only from the manufacturer or an official reseller.