Crypto Wallet
A crypto wallet stores the private keys needed to access and manage your cryptocurrency. It doesn't hold crypto directly — it holds the cryptographic keys that prove ownership of assets on the blockchain.
2 min read · Updated June 2026
Hot wallets are connected to the internet — exchange accounts, mobile apps, and browser extensions like MetaMask. They're convenient but more exposed to hacking. Cold wallets (hardware wallets like Ledger or Trezor) store keys offline and are significantly more secure.
"Not your keys, not your coins" is the fundamental principle. When you hold crypto on an exchange, the exchange controls the keys. The collapse of FTX in 2022 made this lesson painfully clear for millions.
For small amounts and active trading, exchange wallets are practical. For significant long-term holdings, a hardware wallet is strongly recommended.
Backup seed phrases — typically 12 or 24 random words — are the master key to your wallet. Store them offline, in multiple secure locations, and never share them with anyone.
Choosing the right storage strategy is about matching security level to the amount at stake. Don't keep your life savings on an exchange, and don't buy a hardware wallet for $50 in Bitcoin.
Richify's AI agents walk you through crypto security fundamentals — helping you understand the right storage strategy for your holdings and risk tolerance.
