◈ GLOSSARY · CRYPTO & WEB3
Crypto Wallet.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
Software (or a small hardware device) that stores the private keys that prove you own a given crypto address. The wallet doesn't actually hold coins — the coins live on the blockchain; the wallet holds the key that lets you move them. The honest caveat: 'not your keys, not your coins' — if your coins are on an exchange, you're trusting that exchange the same way you'd trust a bank, except without FDIC insurance.
◈ IN PRACTICE
Example
A 'hot' wallet (MetaMask, Coinbase Wallet) is convenient but connected to the internet. A 'cold' wallet (Ledger, Trezor) keeps keys offline on a USB-like device — far safer for large balances, but you have to physically plug it in to transact.
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