FAQ Wallet

A wallet is a digital wallet for storing and managing cryptocurrencies. You can find out more about how it works here: What is a wallet?. for the storage and management of cryptocurrencies. It does not store coins themselves, but the private keys with which you can access your blockchain assets.

There are hot wallets (with an internet connection) and cold wallets (offline). Hot wallets are practical, but more susceptible to hacks. Cold wallets such as hardware wallets are much more secure because they work offline.

A hardware wallet is a physical device that stores your private keys offline. It protects against phishing, malware and hacker attacks. Well-known brands are Ledger, Trezor and BitBox.

A software wallet is an app or desktop program that stores your keys locally. It is convenient and good for everyday use, but less secure than hardware wallets. Well-known examples are MetaMask, Trust Wallet or Exodus.

The Seed Phrase (also known as a recovery phrase) is a list of 12 or 24 words that can be used to recover a wallet. Whoever has this phrase has access to the entire balance - so keep it safe and never store it digitally!

Without Seed Phrase you cannot recover your wallet in the event of a device loss - and all your crypto assets are lost forever. in the event of a device loss - and all your crypto assets are lost forever. There is no central authority to help you - personal responsibility is mandatory.

The Wallet address is public and is used to receive coins. The private key is secret - it proves your ownership and enables you to send coins. and is used to receive coins. The private key is secret - it proves your ownership and enables you to send coins. Whoever has the private key controls the balance.

A custodial wallet is managed by a third-party provider such as an exchange - e.g. Binance or Coinbase. You don't have your own private key, but "borrow" access. It is easier, but you are not actually in possession of your coins ("Not your keys, not your coins").

A non-custodial wallet is managed by you. You have sole access to the private keys and therefore full control over your coins. You are responsible for security and backup.

It depends on your use case: cold wallets are suitable for long-term storage. Software wallets are good for flexible everyday use. Those who trade frequently usually use a custodial wallet - but should be aware of the risks.

Yes, you can use any number of wallets in parallel - e.g. a hardware wallet for long-term storage and a mobile wallet for everyday transactions.

Wallets are pseudonymous - the address does not contain any personal data. However, if you verify yourself with an exchange, for example, your wallet address is linked to your identity.

Mobile wallets offer convenience, but are more susceptible to attacks. Pay attention to PIN protection, biometric blocking and secure storage of your seed phrase.

A paper wallet is a printout of your wallet address and your private key - often as a QR code. It is completely offline, but sensitive to loss or damage.

You enter your seed phrase (12 or 24 words) in a compatible wallet app. This restores your access and your credit is available again.

Your credit is not lost - you can restore it with your seed phrase on a new device or another wallet.

Only use official apps/websites, never download wallets from third-party sources and never enter your seed phrase online.

Hot wallets are connected to the Internet - good for everyday life. Cold wallets are offline and ideal for long-term, safe storage. - Good for everyday use. Cold wallets are offline and ideal for long-term, secure storage.

Intuitive wallets such as Trust Wallet, MetaMask or Exodus are suitable for beginners - they are easy to use and offer good support. Also read our guide "Set up a crypto wallet". such as Trust Wallet, MetaMask or Exodus - they offer simple operation and good support.

A multi-signature wallet requires several keys to approve a transaction. It increases security - especially in companies or teams.

Yes, many wallets can be set up on multiple devices using a seed phrase. This increases convenience, but can also increase the security risk.

A watch-only wallet allows you to monitor only the public part of a wallet - e.g. account balances and transactions, but without access to the credit balance.

Wallets such as Trust Wallet, Exodus, Coinomi or Atomic Wallet support a variety of different cryptocurrencies in a single application.

Most wallets are free of charge. However, network fees are incurred when you send coins. Hardware wallets may incur one-off acquisition costs.

A secure wallet is open source, has good user ratings, regular updates and encrypted key management. Cold wallets offer the best protection.