Wallets and keys
Seed phrases, private keys and who holds them, in plain words.
In short
Explainer, 7 min read (sample)
A wallet does not hold coins; it holds keys. The coins stay on the blockchain, and the key proves you can move them.
Most wallets create a seed phrase of twelve or twenty-four words. Those words can rebuild every key in the wallet, on any device, so they are the real wallet.
Keep the words offline and never type them into a website or send them to anyone. Support staff, exchanges and newsrooms never need them.
Not financial advice. This explainer describes how something works. It does not say whether to buy, sell or hold anything.
Key points
- The seed phrase is the wallet
- Write it down, keep it offline, keep a second copy
- Nobody legitimate will ever ask for it
- Custodial apps hold the keys for you
The weekly explainer: one topic, explained in plain words, every Sunday morning (sample).