Lesson 02 · 7 min
Wallets, keys and seed phrases
A wallet does not hold coins. It holds the secret that proves the coins are yours. This is the lesson that saves people money.
Three things, often confused
An address is public. It is safe to share, like an account number, and it is how people send you funds.
A private key is secret. Whoever holds it can spend the funds. There is no appeal and no reversal.
A seed phrase is 12 or 24 ordinary words that regenerate every private key in the wallet. It is the master backup.
Custodial vs self-custody
On an exchange, the company holds the keys for you. Convenient, recoverable by support, but you depend on them staying solvent and online.
In your own wallet you hold the keys. Nobody can freeze you and nobody can rescue you either.
Storing the phrase
Write the words on paper or stamp them into metal. Store them somewhere fire and flood will not reach.
Never type a seed phrase into a website, a chat, a photo, a password manager note you sync loosely, or a support agent's form. Real support never asks.
Worth remembering
- Address public, private key secret, seed phrase master backup.
- Anyone who reads your seed phrase owns your money instantly.
- Nobody legitimate will ever ask for those words.