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Blockchain & Crypto vocabulary · Wallets & Keys

Wallet

Meaning in blockchain & crypto, with examples

/ˈwɑː.lɪt/nounCore term

In blockchain & crypto, wallet means: An app or device that stores the keys you need to access and move your crypto. The coins themselves stay on the blockchain; the wallet only holds the keys that control them.

In Turkish: cüzdan, kripto cüzdan

How it is used

You create, set up, connect, back up and restore a wallet. In Web3 apps the first step is usually a 'Connect wallet' button. People distinguish hot and cold wallets, hardware wallets, and custodial and non-custodial wallets.

Example sentences

  1. Click 'Connect wallet' and approve the request in your browser extension.

  2. If you lose your phone, you can restore the wallet with your recovery phrase.

Common collocations

  • connect a wallet
  • create a wallet
  • back up a wallet
  • restore a wallet
  • wallet app
  • private keyA secret number that proves you own a wallet and lets you sign transactions. Anyone who has the private key can move the funds, so it must never be shared.
  • seed phraseA list of usually 12 or 24 ordinary words that can rebuild a wallet and all its private keys. It is the master backup of a wallet, so whoever has it controls the funds.
  • wallet addressA string of letters and numbers that shows where crypto can be sent, similar to an account number. On Ethereum, for example, addresses start with 0x.
  • hot walletA wallet whose keys are kept on a device connected to the internet, such as a phone app or browser extension. It is convenient for daily use but more exposed to hacking.
  • cold walletA wallet whose private keys are kept completely offline, for example on a hardware device or on paper, so that hackers cannot reach them over the internet.

More terms: Wallets & Keys

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