A crypto wallet is a tool for storing the private keys that let you access and move your crypto. It doesn’t literally hold coins; it holds the keys that prove the coins are yours on the blockchain.
Main types of wallet
- Custodial wallets: a platform holds the keys for you (convenient, but you rely on that company).
- Non-custodial wallets: you hold the keys yourself (more control, more responsibility).
- Hardware wallets: a physical device that keeps keys offline.
Staying safe
If you control your own keys, your recovery phrase is everything — anyone who has it can take your crypto. Never share it, never enter it into a website, and be wary of anyone who asks for it. Losing it can mean losing access permanently.
Crypto is high risk and largely unregulated in the UK. You could lose all the money you invest, and most crypto is not protected by the FSCS or the Financial Ombudsman Service. This is educational information only, not financial advice. Only invest what you can afford to lose.