Technology
How does a crypto wallet work?
A crypto wallet stores the secret keys that prove you own your cryptocurrency — it doesn't actually hold coins, which live on the blockchain. Your private key signs transactions to spend funds, while your public key works like an address others can send to.
See it in motion.
Watch a 2-minute animated lesson that shows exactly how a crypto wallet works.
Step by step
- 1It stores your private and public keys, not the coins themselves.
- 2The private key signs transactions and must stay secret.
- 3The public key acts as your receiving address.
- 4Lose the private key and you lose access to the funds.
Frequently asked questions
- How does a crypto wallet work?
- It holds the keys that let you prove ownership and authorize transactions of crypto stored on the blockchain.
- What's the difference between a public and private key?
- The public key is your shareable address; the private key is the secret that authorizes spending.
- What happens if I lose my private key?
- You permanently lose access to that crypto — there's usually no way to recover it.