Wallet
MarketsDefinition
Software or hardware that stores private keys to a cryptocurrency address. Doesn't actually hold coins — coins live on-chain; the wallet is the access mechanism.
Hot wallets (MetaMask, Phantom, exchange custody) are convenient but vulnerable. Cold wallets (Ledger, Trezor) keep keys offline; the gold standard for large balances. Lost private keys = permanent loss of funds; ~20% of all Bitcoin is estimated to be permanently lost.
Hot wallets (MetaMask, Phantom, exchange custody) are convenient but vulnerable. Cold wallets (Ledger, Trezor) keep keys offline; the gold standard for large balances. Lost private keys = permanent loss of funds; ~20% of all Bitcoin is estimated to be permanently lost.