A crypto wallet is a digital tool that allows you to store, send, and receive cryptocurrencies. Technically, a wallet does not store your coins directly. Instead, it holds your private keys—the secret codes that prove ownership of your assets on the blockchain.
There are several types of crypto wallets:
- Hot wallets – Software wallets connected to the internet, such as mobile apps, browser extensions, or desktop applications. Examples include MetaMask and Trust Wallet. They are convenient but more vulnerable to hacking.
- Cold wallets – Hardware devices or paper wallets that stay offline. Brands like Ledger and Trezor are popular choices. Cold wallets offer stronger security for long-term storage.
- Custodial wallets – Wallets managed by a third party such as an exchange. When you hold crypto on Coinbase or Kraken, the exchange controls the private keys on your behalf.
- Non-custodial wallets – Wallets where you control your own private keys and seed phrase. This gives you full ownership but also full responsibility.
Choosing the right wallet depends on your needs. For everyday transactions and DeFi interactions, a hot wallet is practical. For storing larger amounts long term, a cold wallet is recommended.
Read our full guide to wallet security to learn best practices for keeping your crypto safe.