What is a cryptocurrency wallet?

So, the term ‘wallet’ is somewhat of a misnomer, as crypto wallets don’t actually store cryptocurrency in the same way physical wallets hold cash. Instead, they read the public ledger to show the balances in a user’s addresses, as well as hold the private keys that enable the user to make transactions. Not Sure What a Public or Private Key Is?

Should you invest in a crypto wallet?

Keeping your private keys secure in a crypto wallet is essential. “Coins and tokens are part of a blockchain system in the form of data, and the wallets serve as a means to access them,” says Martin Leinweber, digital asset product strategist at MarketVector Indexes.

What is a web-based crypto wallet?

Most web-based crypto wallets tend to be custodial wallets. Typically offered on cryptocurrency exchanges, these wallets are known for their convenience and ease of usage, and are especially popular with newcomers, as well as experienced day traders.

What is a non-custodial Crypto Wallet?

There are also software-based non-custodial wallets, such as the Crypto.com DeFi Wallet. The common theme is that the private keys and the funds are fully in the user’s control. As the popular saying within the crypto community goes, ‘not your keys, not your coins!’.