Wallet
A wallet is your access to a balance on the blockchain: it does not hold the coins, it holds the key to them.
Explained simply
The word suggests a purse, but the image misleads. A wallet contains no coins. The coins always sit in the blockchain. The wallet stores the secret key that lets you spend them.
Every wallet has a public address, similar to an IBAN. You can share it to receive payments. The private key, however, stays secret: whoever knows it can spend the balance.
Wallets come as an app, a browser extension or a small device (hardware wallet). Alternatively a regulated custodian keeps the keys for you.
From the familiar world
Your safe deposit box: the gold sits in the bank's vault, not in your pocket. You only carry the key. The wallet is that key, the blockchain is the vault.
An example
An investor keeps her key on a hardware wallet, a device resembling a USB stick. If her laptop breaks, the coins are not lost: they remain in the blockchain and the key sits safely in the device.
Why it matters
"Where are the coins actually stored?" comes up in almost every conversation. The answer "in the blockchain, the wallet is only the key" clears up a common misunderstanding. For fund investors a regulated custodian takes on this task.
To pass on
„A wallet is not the purse, it is the key to the safe deposit box. The balance itself sits in the blockchain.“
The content of this wiki is for general information and educational purposes only. It does not constitute investment advice, an investment recommendation or tax or legal advice. Digital assets are subject to strong price fluctuations and can lead to losses up to a total loss. Content as of 2026, no guarantee of completeness or timeliness.
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