Learn where cryptocurrency is stored, from online exchanges to hardware wallets. Understand key terms like public key, private key, and wallet, and how they work to secure your crypto assets.

Cryptocurrency isn’t stored directly in a “wallet” in the way you might think, but rather on the blockchain. The blockchain is a decentralized digital ledger where the crypto lives, linked to public and private keys. Your public key acts like an email address for crypto transactions—it’s used to send and receive funds. The private key, like a password, provides access to the funds associated with your public key. If someone gets your private key, they can access your funds.

To access these crypto assets, you’ll use a wallet, which is a software or hardware tool that manages your public and private keys. Wallets can be “hot” (internet-connected, easy access but less secure) or “cold” (offline, more secure but harder to access). For example, Trezor and Ledger offer hardware wallets, which store keys offline, providing added security. While exchanges like Coinbase let you store crypto on their platforms, many users prefer transferring their crypto to personal wallets to maintain full control over their assets—emphasizing the mantra “not your keys, not your coins.”