A cryptocurrency wallet is a critical tool for interacting with a blockchain network. Contrary to their name, these wallets don't actually store cryptocurrency; rather, they store the private keys—complex cryptographic codes—that prove ownership of your crypto holdings on the blockchain and allow you to authorize transactions. The corresponding public key acts as your wallet address, which you can share to receive funds.

Key Concepts

• Private Key: The secret code that grants you access and control over your cryptocurrency. Losing your private key means losing your assets forever.

• Public Key (Wallet Address): The address you share to receive cryptocurrency. It is mathematically derived from the private key.

• Seed Phrase (Recovery Phrase): A sequence of 12-24 words generated by the wallet. This is essentially a human-readable master backup for your private keys and is used to restore your wallet on a new device if the original is lost or damaged. Treat it with the same, or greater, security as your private key.