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When you create a new crypto wallet, it will have an associated public and private key-often called the “master” keys that pertain to the entire wallet. Crypto wallets store your private keys-an important part of the public / private key pair that powers the encryption behind crypto. Crypto wallet basics: public and private keysĬrypto wallets don’t actually store your crypto assets themselves those technically live on their respective blockchain networks. In this article: an overview of how crypto wallets work, and the difference between hardware and software wallets. Crypto wallets also come in a few different varieties, like software and hardware wallets.įor an in-depth exploration of custodial and non-custodial wallets, check out our deep dive on crypto custody. Some of them are non-custodial, which puts you in direct control of your crypto assets without having to trust a third-party custodian. Unlike traditional bank accounts, not all crypto wallets are custodial. They can also store different kinds of crypto assets, like tokens and non-fungible tokens (NFTs). US dollars), crypto wallets store digital currencies like bitcoin (BTC) and ether (ETH). Much like how a bank account holds fiat currency (e.g.
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They’re your gateway to crypto ownership, and to the decentralized apps (DApps) built on Web3. Crypto wallets let you buy, store, and transfer crypto.
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