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Crypto & blockchain·beginner

Crypto Wallet

Software or hardware that stores the private keys used to control and move a user's cryptocurrency.

Definition

A crypto wallet does not literally hold coins; it stores the cryptographic private keys that authorise transactions on a blockchain, where the assets actually live. Wallets range from mobile and browser apps to dedicated hardware devices. A key distinction is custody: a non-custodial wallet gives the user sole control of the keys (and full responsibility), while a custodial wallet, such as a balance held at an exchange or casino, means a third party controls the keys. In gambling, whoever holds the keys effectively holds the funds, so depositing to a casino usually hands custody to the operator until withdrawal.

Worked example

You install a non-custodial wallet app, receive BTC to its address, then send some to a casino's deposit address to fund your account.

Why it matters

Understanding key custody is essential to not losing funds; professionals map wallet custody to AML and liability considerations.

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