Crypto Wallets
A crypto wallet is an application that functions as a wallet for digital assets. It contains components that rely on public key infrastructure (PKI).
Crypto digital assets are stored on the blockchain and can only be accessed using a private key. Your private key allows you to make transactions and unlocks the right to spend the associated cryptocurrencies. If you lose your private key, you lose access to your cryptocurrency.
Important Clarification
Crypto wallets do not actually store digital assets. They store the private keys that grant access to those assets. The wallet also provides the interface to send, receive, and manage the assets.
Components of a Crypto Wallet
| Component | Description |
|---|---|
| Public Key | Determines the address used to send crypto funds to the wallet and is generally visible on the blockchain. |
| Private Key | Verifies transactions and should not be accessible to anyone else. |
| Recovery Phrase | A 12–24-word seed phrase used to restore access to the wallet. |
| Password | May be required to unlock or access the wallet. |