Start Here · Beginner lesson · about 3 minutes
Wallets, keys, and recovery phrases
A wallet is an app or device that holds your secret keys. A key is what lets you send your coins. The coins themselves aren't inside the app. They're written in the shared record.
The short answer
A wallet is an app or device that holds the secret keys used to send coins. The coins themselves stay on the network’s record, not inside the app.
In plain English
A wallet is an app or a small device that helps you see your balance, get a receiving address (the destination for a payment), and approve sends. A private key is the secret that proves you are allowed to send. A recovery phrase is a list of ordinary words that can rebuild those keys if you lose the device.
An exchange account is different. On an exchange, the company usually holds the keys and shows you a balance, like a brokerage. If you hold the keys yourself—sometimes called self-custody—you are in charge of backups, device safety, and what happens to the coins if you cannot use them.
What can go wrong
Read this before you act.
Anyone who gets your recovery phrase can usually rebuild the wallet and move the coins. No legitimate support agent, giveaway, or random checker should ever need it. A legal process can compel records or keys; that is different from someone messaging you.
Check your understanding
A few questions. Not a test.
Pick an answer to see why it's right or wrong. There's no score to unlock.
Sources and corrections
This lesson is a starting point. The two sites below are good general places to learn more. Please tell us if something needs fixing.