Glossary
Wallet (crypto): meaning, example and why it matters
Software or hardware that stores the private keys controlling your crypto. With a custodial wallet (such as on an exchange) a company holds the keys for you; with self-custody you hold them and are responsible for their safety.
Worked example
An exchange holding ₹1,00,000 of your coins controls the keys, so your funds depend on that company. In self-custody you hold the keys as a 12 or 24 word phrase, and if you lose it no one can restore access.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Who holds the keys decides who can move the funds, which is the main difference between wallet types.
Related terms
See it in practice
Frequently asked questions
Which kind of wallet is safer?
Each has different risks: company failure for custodial wallets, lost or stolen keys for self-custody.
Is this page investment advice?
No. Wallet (crypto) is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Start learning free →Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.