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Beginner
Lesson 1 of 1

Using Bitcoin

100% Complete

Bitcoin Wallets

18 min
Introduction

Bitcoin wallets are software or hardware that manage your Bitcoin private keys. Understanding wallets is essential for safe Bitcoin usage.

Main Content

A Bitcoin wallet doesn't actually store Bitcoin - it stores the private keys that control Bitcoin addresses on the blockchain.

Hot wallets are connected to the internet (mobile apps, desktop software, web wallets). They're convenient but less secure.

Cold wallets are offline (hardware wallets, paper wallets). They're more secure but less convenient for frequent transactions.

Custodial wallets are controlled by a third party (exchanges, banks). You don't control the private keys.

Non-custodial wallets give you full control of your private keys. This is true Bitcoin ownership.

Popular wallet types include mobile wallets (BlueWallet, Electrum), hardware wallets (Ledger, Trezor), and full nodes (Bitcoin Core).

Key Takeaways
  • Wallets store private keys, not Bitcoin itself
  • Hot wallets are convenient, cold wallets are secure
  • Non-custodial wallets provide true ownership
  • Choose your wallet based on your security needs and usage patterns
Practical Exercise

Download a reputable mobile Bitcoin wallet and explore its interface. DO NOT send real Bitcoin until you complete this section.

Knowledge Check

What does a Bitcoin wallet actually store?