--- title: Wallet url: "https://www.unknowngravity.com/en/glosario/wallet" site: Unknown Gravity published: "2025-06-07T15:03:07+00:00" modified: "2026-07-30T15:43:02+00:00" language: en-US description: A wallet is a software application or physical device that stores and manages public and private cryptographic keys associated with a blockchain address. section: "Home > Wallet" --- # Wallet GLOSSARY · BLOCKCHAIN & WEB3 Application or device that allows you to store and manage private keys to send and receive cryptocurrency. WHAT IS IT? · FOR DUMMIES A **wallet**, or digital wallet, is like an **electronic wallet** that lets you **store, send and receive cryptocurrency**. It does not keep the money itself, but the **“keys” that prove that you are the owner** of that money on the blockchain. If you lose those keys, **you lose access to your cryptos**, just like if you lose a real key. WHAT IS IT? · PRO A **wallet** is a **software application or physical device** that **stores and manages public and private cryptographic keys** associated with a blockchain address. Its main function is to **securely sign transactions**, validating the user's authorization to move funds or interact with smart contracts, and **read the blockchain status associated with that address**. There are different types of wallets, classified mainly by their level of connection and security: 1. **Hot Wallets (hot wallets)** - Always connected to the internet. - Fast and convenient to operate. - Examples: MetaMask, Trust Wallet, Rainbow, Phantom. - Increased exposure to attacks if the device is compromised. 2. **Cold Wallets (cold wallets)** - Disconnected physical devices or environments. - They offer greater security, ideal for long-term storage. - Examples: Ledger, Trezor, paper (paper wallet), air storage (air-gapped). 3. **Custodial vs Non-Custodial** - **Custodial**: The private key is managed by a third party (e.g. exchange such as Binance). - **Non-Custodial**: the user maintains complete control of their keys and funds. 4. **Smart Contract Wallets** - They are smart contracts that act as wallets (e.g. Safe, Argent, Capsule). - They allow advanced features such as **Multisig**, social recovery, spending limits or scheduled execution. A **wallet does not store cryptocurrency itself**, but it allows you to interact with them, since assets exist on the blockchain. What is really saved are the **private keys**, which grant control over those assets. If a user loses the private key (or the recovery seed), **irreversibly loses access**. Wallets also allow: - **Connect to dApps** in Web3. - **Digitally sign messages or authentications** (login without password). - **Participate in voting or DAOs**, using governance tokens. ## 01 / Key points - Save the keys that allow you to control your assets on the blockchain - It can be software, hardware, or even a smart contract - It does not directly contain cryptocurrencies, but rather access to them - There are hot wallets (fast) and cold wallets (secure) - Your custody may be personal or delegated to a third party. ## 02 / Advantages - **Full control over your funds and tokens** (in non-custodial wallets) - **Direct interaction with the Web3 ecosystem** (NFTs, DeFi, DAOs) - **Securely sign digital transactions and documents** - **Compatibility with multiple blockchains and assets** - **Global availability without the need for banks or intermediaries** ## 03 / Disadvantages - **If you lose your private key, you lose access to your funds** - **Hot wallets are exposed to hacking risks** if they are not properly protected - **Management can be complex for non-technical users** - **Not all wallets support all blockchains** - **Some wallets don't offer support in case of error or loss** RELATED CONCEPTS [Public and private key](/en/glosario/clave-publica-clave-privada) [Digital signature](/en/glosario/firma-digital) [Cryptocurrency](/en/glosario/criptomoneda) [Self-custody](/en/glosario/auto-custodia-self-custody) [Smart Contract](/en/glosario/smart-contract-contrato-inteligente) [Smart contract](/en/glosario/smart-contract) KEEP LEARNING [How to protect your digital assets in the cryptocurrency world](/en/articulos/como-proteger-tus-activos-digitales-criptomonedas) [What Do Blockchain Developers Do?](/en/articulos/que-hacen-los-desarrolladores-blockchain) [Why are your users leaving your dApp? 5 keys to improving the UX of your dApp](/en/articulos/claves-mejorar-ux-dapp) [Integrate Web3 without scaring anyone: how to make your dApp usable by humans](/en/articulos/integrar-web3-sin-asustar-a-nadie-como-hacer-tu-dapp-usable-por-humanos) [How to convert Web2 users to Web3 without them running](/en/articulos/como-convertir-usuarios-web2-en-web3-sin-que-salgan-corriendo) RELATED SERVICES [Digital Identity Management](/en/servicios/blockchain-para-gestion-de-identidades-digitales) [Web3 Development](/en/servicios/desarrollo-web3) [DApp Development: Decentralized Applications](/en/servicios/aplicaciones-descentralizadas-dapps) [Blockchain consulting for companies](/en/servicios/consultoria-blockchain) [Full glossary](/en/glosario) This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version on [BOE](https://www.boe.es) and [EUR-Lex](https://eur-lex.europa.eu).