If you want to interact with cryptocurrencies – whether to store Bitcoin, swap tokens, or use DeFi – you’ll need a so-called crypto wallet. But unlike a traditional wallet, a crypto wallet doesn’t “store” coins inside it.
Instead, it manages your private keys, connects to the blockchain, and gives you full control over your digital assets. In this article, you’ll learn how wallets work – and how to choose the one that fits your needs.
What is a crypto wallet?
A crypto wallet is a software or hardware tool that lets you send, receive, and manage cryptocurrencies securely. It stores your private keys – the credentials needed to access your funds on the blockchain.
So the wallet doesn’t actually hold your coins, but rather the “key” to control them. The coins themselves always remain on the blockchain – not in the app.
What types of wallets exist?
- Hot Wallets: Connected to the internet, convenient but more vulnerable (e.g. app or browser extension)
- Cold Wallets: Stored offline, ideal for larger amounts (e.g. hardware wallet or paper wallet)
- Custodial Wallets: A third party (e.g. exchange) manages the keys for you
- Non-Custodial Wallets: You manage the keys yourself – maximum freedom, maximum responsibility
With Floin, you can securely deposit from any standard wallet to your on-chain balance. Whether you’re using a self-managed cold wallet or a mobile app – you stay flexible and free in your choice of tools.
Public Key vs. Private Key
Each wallet technically consists of a public key (your address) and a private key (your digital signature). You can share your address publicly – that’s how others send you crypto. The private key, on the other hand, must remain secret, as it gives you full access to your funds.
Many wallets also generate a seed phrase – a backup phrase of 12 to 24 words that lets you recover your wallet if it gets lost.
What can you do with a wallet?
- Send and receive crypto
- Use DeFi platforms, NFT marketplaces, or staking
- Store stablecoins as digital money
- Connect to DApps
Some wallets support multiple blockchains and hundreds of tokens, while others are tailored to one specific network. Important: When interacting with Floin, make sure your wallet supports the correct blockchain (e.g. Ethereum, Polygon, or Arbitrum).
Which wallet is right for you?
The best wallet for you depends on how you use crypto:
- Beginners: Start with a user-friendly app or a custodial wallet
- Security-focused: Use a hardware wallet and store your seed phrase offline
- Active users: Choose wallets with fast exchange integration and multi-chain support
No matter what you choose: Only those who control their keys truly control their crypto.
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