👛 What is a Wallet?
👛 What is a Wallet?
(Custodial vs Non-Custodial)
A crypto wallet is your personal tool for storing, sending, and receiving digital assets. It’s like your online bank account — but you’re fully in control.
🔐 What Does a Wallet Do?
Stores your private keys securely
Lets you access and manage your tokens
Allows you to sign transactions (send coins, interact with dApps, etc.)
But wait — wallets don’t actually store your crypto. The crypto stays on the blockchain. Your wallet just gives you access to it.
🧠 Two Main Types of Wallets
🔒 1. Non-Custodial Wallet
You hold your own keys. You are the bank.
Examples:
Phantom (Solana)
MetaMask (Ethereum, BNB)
Trust Wallet
Pros: ✅ Full control ✅ More private ✅ Works with dApps and DeFi tools
Cons: ❌ If you lose your secret phrase — it’s gone forever ❌ Requires more responsibility
📌 You’ll get a secret recovery phrase (12 or 24 words). Store it safely and never share it!
🏦 2. Custodial Wallet
A third party (like an exchange) holds your keys for you.
Examples:
Binance Wallet
Coinbase Wallet
Kraken account wallets
Pros: ✅ Easy to use ✅ You can reset passwords ✅ Beginner-friendly
Cons: ❌ You don’t fully control your funds ❌ Exchange can freeze access ❌ Not ideal for DeFi or Web3 apps
🔑 Rule of thumb: Not your keys = Not your crypto
👟 Quick Analogy
Non-Custodial Wallet = like cash in your pocket
Custodial Wallet = like money in a bank account
💡 Tip for Beginners
Start with a custodial wallet if you’re just testing things out. But once you get serious, move to a non-custodial wallet for full control and Web3 access.
📥 Bonus: How to Set Up a Phantom Wallet
Download the browser extension
Create a new wallet
Save your secret phrase
You’re ready to go!
🧪 In Summary
Your wallet is the gateway to Web3. Whether you choose full control or convenience, just remember:
🔐 Always protect your keys — they are your digital identity.
🧭 Next Lesson: What is a Private Key?
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