Before you can trade, stake, or store crypto securely, you need to understand one thing first: your wallet is your foundation. It’s not just where your assets live, it’s how you prove ownership, safeguard your funds, and stay in control of your digital future. But what is a crypto wallet? Why do people talk about “keys”? And how do you choose the right one without getting lost in the jargon?
Let’s break down. No hype. No fluff. Just the facts you need to trade with confidence.
What is a Crypto Wallet?
A crypto wallet is your gateway to the blockchain. It doesn’t “hold” your crypto the way a traditional wallet holds cash. Instead, it gives you access to your funds, specifically, the private keys that prove you own assets on the blockchain.
Think of it like this: the blockchain is your vault. Your wallet is the key. If you lose the key, you lose the vault. There is no password reset, no customer service hotline. That’s why your wallet is so critical. Without it, you can’t send, receive, or securely store your crypto. At EQX, we’re committed to security—learn more about how we’re Building a New Era of Trust.
How It Works: Keys, Ownership, and Security
Every wallet is built around two things: a public key and a private key.
The public key is what you share with others to receive crypto, like an account number. It’s safe to post or send. The private key is the opposite: it’s your proof of ownership, your access pass, your everything.
If someone has your private key, they have your crypto. That’s why protecting it is non-negotiable. Your wallet stores these keys, not the crypto itself. And the type of wallet you use; hot, cold custodial or non-custodial, determines how those keys are managed and protected.
Choosing a Wallet: Hot, Cold, or Somewhere in Between?
Wallets come in different forms depending on how you want to access and secure your assets.
Hot wallets are connected to the internet and are great for quick everyday use. They are ideal if you’re an active trader or just starting out, since they’re easy to set up and use on your phone or browser. But that same convenience comes with a tradeoff - more exposure to online risk like phishing or malware.
Cold wallets, on the other hand, store your private keys offline. These are physical devices or just paper with printed keys, that aren't connected to the internet at all. They’re harder to hack and better suited for long-term storage. But they’re less convenient for on-the-go trading, and if you lose the device without a backup, your crypto is gone.
Custodial vs. Non-Custodial: Who’s Holding the Keys?
There’s another decision to make: do you want full control over your wallet, or do you want someone else to manage the keys for you? With a custodial wallet, like the one you get with your EQX account, we handle your private keys for you. It’s simple and stress-free. You focus on trading, and we take care of the tech. With EQX, your wallet will also be backed with real-time proof-of-reserves, so you always know your funds are safe and accounted for.
If you prefer full control, a non-custodial wallet puts the keys and the responsibility entirely in your hands. You’re the only one who can access your assets. This gives you maximum privacy and ownership, but also it means there’s no one to call if you lose your recovery phrase.
Neither option is “better.” It's about what works for you. Custodial wallets are perfect for beginners or those who want to trade frequently without managing backups and passwords. Non-custodial wallets are best for users who want full sovereignty and are willing to take on the responsibility that comes with it.
What Should You Consider When Choosing a Wallet?
Start with your priorities. If security is everything, especially if you are storing large amounts, a cold wallet like a Ledger or Trezor is worth the investment. If convenience matters more and you are trading smaller amounts more often, hot wallets like MetaMask or Trust Wallet offer speed and flexibility. And at EQX, we’ve taken it further by making trading free for everyone with EQX Zero.
Net new to crypto? A custodial wallet like one provided by EQX is a great on-ramp. You won’t have to worry about private key management, and we layer in security features like two-factor authentication.
No matter what wallet you choose, one rule always applies: back it up. Write down your seed phrase, store it offline, and never share it with anyone. That backup is your only safety net.
Final Word: This is Where Confidence Starts
Your wallet is more than a tool, it’s the foundation of your experience with crypto. When you understand how wallets work, you stop being a spectator. You become an owner. A participant. A confident trader.
At EQX, we’re here to make sure you don’t just hold crypto, you own your experience. To learn more about our vision and commitment, check out this message from our founder.
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Written by
Anna Bittner
