01
Software Wallet
A wallet application that allows users to interact with blockchain networks through a computer, browser or mobile device.
SECURITY
How Crypto Wallets Work
Learn how crypto wallets work, including addresses, private keys, seed phrases and the basics of protecting digital assets.
Security Guide
Protecting Your Digital Assets
THE BASICS
What Is a Crypto Wallet?
A crypto wallet is a tool that helps users manage the information required to interact with blockchain networks and digital assets.
Wallets are commonly associated with addresses and cryptographic keys. The wallet itself does not simply work like a physical wallet holding coins.
Understanding the difference between a wallet, an address, a private key and a seed phrase is an important foundation for crypto security.
WALLET TYPES
Different Ways to Manage Crypto
Crypto wallets can be designed in different ways depending on how users access and protect their keys.
02
Hardware Wallet
A dedicated physical device designed to provide an additional layer of protection for sensitive cryptographic information.
03
Custodial Wallet
A service where another provider manages the private-key infrastructure on behalf of the user.
KEY INFORMATION
Address, Private Key and Seed Phrase
These terms appear frequently when learning about crypto wallets and security.
Public Address
An address can generally be shared with others when receiving compatible digital assets.
Private Key
Private cryptographic information that may authorize transactions or other actions involving assets.
Seed Phrase
A recovery phrase that can be used by compatible wallet systems to restore access to wallet information.
HOW IT WORKS
From Wallet to Blockchain
A wallet provides the tools required for a user to interact with a blockchain network.
Select Destination
The user specifies the destination address and the amount involved in the transaction.
Authorize
The wallet uses the relevant cryptographic information to authorize the transaction.
Network Confirmation
The transaction is submitted to the relevant blockchain network for processing and confirmation.
SECURITY FIRST
Protect the Information That Protects Your Wallet
Wallet security starts with understanding which information can be shared and which information must remain private.
Public Address
Used to receive compatible
digital assets.
Private Key
Sensitive information that
should remain private.
Seed Phrase
Keep recovery information
confidential and secure.
Password
Use strong credentials and
avoid sharing them.
SECURITY BEST PRACTICES
Simple Habits for Better Wallet Security
Good security practices can reduce common risks when interacting with digital assets.
Protect Your Seed Phrase
Keep recovery information private and avoid entering it into unknown websites or applications.
Verify Addresses
Carefully check destination information before confirming transactions.
Beware of Phishing
Be cautious with unexpected links, messages and requests for wallet information.
Keep Software Updated
Use trusted wallet software and keep supported applications and devices updated.
KEEP LEARNING
Build Stronger Crypto Security Knowledge
Continue learning about crypto security, scams, wallets, blockchain and practical digital asset concepts.
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