Wallets: what they are and which one you need
A wallet doesn't store your cryptocurrency. It stores the keys that let you move it.
The safe-deposit-box analogy
Your cryptocurrency never "leaves" the blockchain. Think of it this way:
- The blockchain is like a bank full of safe-deposit boxes
- Your wallet is the keyring that holds the key to your box
- Your address is your box number, which you can share so others can deposit into it
That's why "losing your wallet" doesn't mean the money got erased: it means you lost the key. And that's why anyone who copies your key can drain you without ever touching your phone.
Your address
It's public. Share it without worry: it's for receiving, not for spending.
| Blockchain | Format | Example |
|---|---|---|
| Bitcoin | starts with 1, 3 or bc1 | bc1q39vq0ueulr36klrtddhgfchedd72h7ffuta0yf |
| Ethereum and EVM | starts with 0x, 42 characters | 0x834fC75B56580B544b449705b4d0cf583949bB10 |
| Solana | 32-44 characters | D8Lu3ntZPAjtyzSgZvF95G48oaEhUxJCfArdrGy2KD23 |
Never type it by hand
Always copy and paste, and verify the first and last 4 characters. One wrong character means losing the funds forever. See Receiving crypto.
One seed phrase, many addresses
When you create a wallet it gives you 12 or 24 words. All of your addresses, on every blockchain, come from those words:
bc1q39v…a0yf0x834fC7…bB10D8Lu3nt…KD23This has two practical consequences:
- The same seed phrase in MetaMask, Phantom or Trust Wallet opens the same wallet. The app is just a window.
- Whoever has those words has everything. There's no recovery, no support, no reversal.
The rule that sums it all up
Never share your seed phrase, with anyone, for any reason. No legitimate service ever asks you for it.
How to store it safely — paper, metal, how many copies, what to do about inheritance — has its own page: Securing your seed phrase.
Types of wallet
The keys belong to the exchange, not you.
The keys live on your phone or computer.
The keys never leave the device.
| Type | Where your keys live | Main risk |
|---|---|---|
| Exchange | On the company's servers | They go bankrupt, block you, or get hacked |
| Software | On your device | Malware, phishing, signing something bad |
| Hardware | On an isolated chip | Losing it without a backup of the seed |
An exchange isn't really your wallet — it's an account. The difference is explained in Binance vs Uniswap.
Which one should I use?
The honest answer depends almost entirely on how much you have:
| If you have… | Use |
|---|---|
| Less than $500 | A software wallet. A hardware wallet is over-engineering. |
| $500 – $5,000 | Software for day to day; start considering hardware. |
| More than $5,000 | Hardware wallet. Seriously. |
| A lot more | Hardware + multisig: several keys, none of them enough on its own. |
Which one to install
| If you use… | Install | Why |
|---|---|---|
| Ethereum, Arbitrum, Base, Polygon | Rabby or MetaMask | Rabby simulates the transaction for you before you sign |
| Solana | Phantom | It's the standard, and very user-friendly |
| Bitcoin only | Sparrow (desktop) or BlueWallet (mobile) | Built specifically for Bitcoin |
| A bit of everything, from your phone | Trust Wallet or Phantom | Multi-network in a single app |
Why we recommend Rabby over MetaMask
Before you sign, Rabby shows you what's actually going to happen with your funds: how much goes out, how much comes in, and whether the contract looks suspicious. It's the difference between signing blind and signing informed. See Before you sign.
Only download from the official site
metamask.io · rabby.io · phantom.app
There are fake extensions with the same icon and the same name that drain your wallet the moment you type in the seed. Never search for your wallet on Google: type the URL or use a bookmark. More in Spotting scams.
Have more than one wallet
This is probably the best habit you can adopt, and it's free:
| Wallet | For what | How much to put in it |
|---|---|---|
| Savings | Just holding. Almost never signs anything. | Most of it |
| Daily | Normal operations, buying, sending | What you need this week |
| Degen | Trying new things, airdrops, memecoins | What you can afford to lose without it hurting |
Signs nothing. Only receives and holds.
Signs the usual: swaps, payments, purchases.
Signs whatever. Assume it gets lost.
If your degen wallet gets hacked, you lost 1%. If you had everything together, you'd have lost it all.
Use different seed phrases
Creating "account 2" inside the same wallet isn't enough: if the seed phrase leaks, every account derived from it goes down with it. Truly separate wallets = separate seeds.
Summary
- A wallet stores keys, not coins
- Your address is public; your seed phrase is everything
- Less than $500: software wallet. More than $5,000: hardware
- Only download from the official site
- Keep at least two separate wallets
If you came looking for something else:Create your first wallet, step by step · Someone's about to send me crypto · Securing your seed phrase