What is Wallet?
A wallet stores private keys and uses them to sign transactions. It doesn't 'hold' coins — the coins live on the blockchain. Wallets come in hot (online), cold (offline) and hardware variants, with different trade-offs between convenience and security.
Why Wallet matters
Understanding Wallet is part of building a solid mental model of how Bitcoin, blockchain and Web3 systems actually work. Concepts in the Security category sit at the foundation of the broader stack — get them right and the rest is far easier.
Learn this interactively
Reading the definition is a start. ZeroToBlock teaches concepts like Wallet through hands-on, browser-based simulations. Build the mental model by actually using it:
- Bitcoin 101 — interactive fundamentals course
- Bitcoin Proof of Work — mining, hashing and consensus
- Browse all interactive blockchain courses
Related terms
- Private Key — The secret number that authorises spending from an address.
- Seed Phrase — A human-readable backup of a wallet's private keys.
- Address (Bitcoin / Crypto Address) — A public destination for receiving cryptocurrency.
More security terms
- 51% Attack — An attack where one party controls majority hash power.
- Cold Storage — Keeping private keys offline for security.
- Custody — Who controls the private keys.
- Slashing — Destroying part of a validator's stake as punishment.
- Multi-Signature (Multisig) — A wallet requiring multiple keys to spend.
- Hardware Wallet — A dedicated device that signs transactions offline.
- Hot Wallet — A wallet whose keys live on an internet-connected device.
- HD Wallet (BIP-32) — A wallet that derives many keys from one seed.
Keep exploring
Continue with the full blockchain glossary — 136 terms in total — or read the developer blog and FAQ for deeper context.