---
# System prepended metadata

title: 'Chapter 1, Section 4: Your First Crypto Wallet'
tags: [Chapter 1]

---

# Chapter 1, Section 4: Your First Crypto Wallet

###### tags: `Chapter 1`

A crypto wallet helps you [[secure your crypto]].

Contrary to popular belief, crypto wallets do not store your crypto. They simply allow you to access your crypto.

**The Details**

A crypto wallet comprises two components: [[Public Key]] & [[Private Key]].

With both keys, you can access your cryptocurrency.

You can create a crypto wallet today, for free! 

These are [[software wallets]], which are applications you can download and make use of to set up your virtual wallet.

The other type of wallets are [[hardware wallets]], which costs money but are more secure.

## Terms To Nutshell
1. Secure Your Crypto

All cryptocurrencies are stored on the blockchain. Your crypto wallet contains the password to your crypto (private keys).

Hence, your virtual wallet only secures, not stores, your crypto.

2. Public Key

The public key is the address of your crypto wallet.

It identifies your crypto wallet, and allows protocols or other people to interact with your wallet.

As implied, your public key is public information.

3. Private Key

**DO NOT share your private key!**

The private key is the password of your crypto wallet.

If someone finds out your private key, they can easily hack your crypto wallet, and steal your funds. 

You may hear another term used synonymously: Seed Phrase.

The seed phrase is the backup generator of your private key. You can use your seed phrase to generate your private key.

**So, DO NOT share your seed phrase too!**

4. Software Wallets

Software wallets are applications that allow you to interact with the blockchain.

In other words, you need software wallets to perform activities in crypto - exploring the metaverse, executing protocols, etc.

Software wallets are not supposed to know your private keys.

You can create your first software wallet on reputable applications: try out [Metamask](https://metamask.io/), a popular and easy-to-use wallet. 

5. Hardware Wallets

Hardware wallets are physical devices which enhances the security of your crypto.

Remember: Hardware wallets don't store your crypto!

Instead, hardware wallets store your private keys - and require physical confirmation whenever you interact with the blockchain.

For example, you need to confirm (by clicking on your physical device) whenever you transfer crypto out of your hardware wallet.

Hardware wallets cost anywhere from $100-$500. It definitely is a good investment when your portfolio has reached a certain size!



