In plain English
What Crypto wallet means
A wallet gives a person or organization a way to interact with crypto held at blockchain addresses. Depending on its design, it may generate private keys locally, ask the user to approve a transaction, or have a provider control the keys. Wallets can be self-custodied, meaning the user controls the credentials, or custodial, meaning another firm controls them on the user’s behalf.
Why it matters
The wallet model determines who can authorize a transfer and how recovery works after a lost device or compromised account. A wallet interface can show balances and transaction history, but access to the underlying assets depends on the relevant keys or the custodian’s controls—not on possession of the app alone.
Example
Mina installs a self-custody wallet and writes down its recovery phrase. The app derives addresses and prepares a transaction, but Mina’s private key authorizes it. If she deletes the app, reinstalling compatible software and restoring the phrase can recover access. If an exchange holds the keys instead, Mina generally uses its account-recovery process.
Quick answers
Common questions
Does a crypto wallet hold coins?+
Usually, no. Crypto assets are represented by entries on a blockchain. A wallet holds or accesses the credentials needed to control addresses and sign transactions affecting those entries.
Can one wallet support several cryptocurrencies?+
Yes, if its software and key-management design support the relevant networks. Support for an asset’s name alone is not enough; the wallet must also support the correct blockchain and transaction format.
Sources