Academy / beginner

How wallets work

9 minute read · beginner

A wallet does not hold coins the way a physical wallet holds cash. The blockchain holds balances. Your wallet holds keys that can sign transactions for an address.

A seed phrase (recovery phrase) can recreate those keys. Anyone who has it can move the funds. JC will never ask for a seed phrase, private key, or wallet password.

Software wallets run on a phone or browser. Hardware wallets keep keys on a dedicated device. Browser extensions can be convenient and also a larger attack surface.

Connecting a wallet to a site usually means the site can see your address and ask you to sign. Read every signature request. If you do not understand it, reject it.

Wallet safety

Always verify links through the project's official channels. Never provide your seed phrase or private key.

This lesson is education, not personalized financial advice.