### Not your keys, not your coins - Fix typos and grammatical errors.

### Explain what wallet is-

lets take an example of Paytm wallet or Phonepay walllet, not talking about UPI- interfacte. before the introduction of UPI- you had to load up the currencies to paytm wallet and then use it. here yourmoney is stored in paytm wallet, but in crypto, it doesn't work like that.

A wallet is a tool that is used top connect to blockchain network. technically all of yourassetes are stored in BC. not on wallet. it is just an tool to interact/access.

### different types of wallet (Hot, Cold)

#### There are 3 types of wallets

- Software - Hot wallet.
- Hardware - cold
- Paper - cold

***

- Hot wallet is the one which is always connected to the internet.
- Cold wallets are the safest form to store, it is not connected to the internet, instead they use physical medium to store the keys- get back to it later.

### Software wallets

this can be either
- Web wallet
- Desktop wallet
- Mobile wallet

### Hardware wallet

This is much more secure compared to software wallet, but not accessable easily. that's the cost you are paying.

ex- ledger, trezor.

### Paper wallet.

- whith the help of QR codes. mostly flawed, you can use this as a additional step to remember or pass your seedphrases.

### Shady exchanges

### why wallets are impotant- evacuating country.

unlike normal wallet which can hold cash, crypto wallet technically doesn't store your crypto. your holdings live on blockcjhain which can be accessed only using private key.

your keys proves the ownership and allow you to make transactions. if you lose your keys, you will lose your coins fporever. i.e there is nothing like username, password reset option.

### Lets talk about keys-

lets not get into technical details here. usually its hard to remeber, so BIP39 was introduced. now all you need to remeber is this 12digits words. you can load up on any wallet.

### Custodial vs non custodial

| Custodial | non custodial|
| -------- | -------- |
| Exchanges. | custodial- we own it. |
| another party control your keys, you are just creating your account. we have seen few shady excahanges in the past.| you have control over your funds. you will be having your keys.

some wallet has inbuilt feature to swap coins, buy sell.

you can swap the wallet providers anytime. wallet dont have custody of your funds, you do. they are just a tool for managing.

That's why they say- not your keys, not your coin.