Module 3: Crypto wallets: how to safely store and use cryptocurrency?
From this module, you will understand what crypto wallets are, how they function, and how they are divided into two main categories. We will also cover the essential guidelines for secure interaction with crypto wallets, which will help safeguard your cryptocurrency.
A crypto wallet stores the keys to access cryptocurrency on the blockchain: the public and private keys. The public key is available to everyone and serves as an account number, for instance, to receive cryptocurrency from other users.
The private key is a secret phrase consisting of 12 or 24 words. Whoever knows the key has full access to the wallet and the cryptocurrency within it. Therefore, the private key should never be shared with other users.
Wallets are divided into custodial and non-custodial types. Custodial wallets are akin to bank accounts, where upon depositing cryptocurrency, the user entrusts it to the management of a company. This is not always secure. Non-custodial wallets exist within the blockchain itself and are more secure, as only the owners of the private keys have access to the cryptocurrency stored in them.