🔐 Crypto Wallets – FAQ

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1. What is a crypto wallet?

A crypto wallet is a tool that lets you store and manage your cryptocurrency. It doesn’t actually hold the coins (they live on the blockchain), but it stores the private keys you need to access and move them.
2. What’s the difference between a hot wallet and a cold wallet?

Hot wallet: Connected to the internet (e.g., browser extensions, mobile apps). Easier to use, but more vulnerable to hacks.

Cold wallet: Offline storage (e.g., hardware wallets, paper wallets). More secure, but less convenient for frequent transactions.

3. What’s the difference between a custodial and non-custodial wallet?

   Custodial: A third party (exchange, platform) holds your private keys. Easier for beginners, but you rely on their security.

   Non-custodial: You hold your own keys. More control, but you’re responsible for keeping them safe — lose your keys, lose your crypto.

4. What is a seed phrase?

A 12–24 word backup code generated when you create a wallet. It’s the master key to your crypto. Anyone with it can access your funds.
Never share it. Store it offline and in multiple safe places.
5. Can I have more than one wallet?

Yes — in fact, many people use multiple wallets for different purposes (e.g., trading vs. long-term storage) to improve security.
6. Are mobile wallets safe?

They’re convenient, but not the safest. Use only official apps, enable biometrics/2FA, and never store large amounts you can’t afford to lose.
7. What’s a multi-signature (multisig) wallet?

A wallet that needs multiple private keys to approve a transaction. Useful for businesses, shared accounts, or extra security in personal wallets.
8. Can wallets hold NFTs as well as crypto?

Yes — many wallets (like MetaMask) can store ERC-721/ERC-1155 tokens and display your NFTs alongside your coins.
9. What happens if I lose my private key or seed phrase?

Your crypto is gone forever. There’s no “reset password” in blockchain. This is why key management is critical.
10. Which wallet is best for me?

Beginner & convenience-focused → Custodial or hot wallet with strong security features.

Long-term investor / high value → Hardware (cold) wallet + offline seed storage.

Power user / DeFi trader → Non-custodial hot wallet with multi-chain support.