What is a crypto wallet?
A crypto wallet is a program or a small device that holds the private keys to your coins. The coins themselves are not in the wallet; they are recorded on the blockchain. The wallet is the key that proves they are yours and lets you send them on. Lose the key and you lose access — and there is no bank that can let you back in.
Who holds the key?
- At a crypto exchange: The exchange holds the key, and you have an account with the exchange. It is easy — but your coins are only as safe as the exchange. When FTX went bankrupt in November 2022, customers could not get to their money.
- In your own wallet: You hold the key yourself. No exchange can freeze your coins — but nobody can help you if you lose the key or get scammed.
In the crypto world people say not your keys, not your coins. If you do not hold the key, you in practice own a promise.
Hot and cold
- Hot wallet: an app on your phone or computer that is online. Easy for small amounts. More exposed to hackers and fake apps.
- Cold wallet: a small physical device or a piece of paper that is offline. Harder to hack. But it can get lost, break or burn.
Whichever you use, the most important thing is the seed phrase — the 12 or 24 words that can restore the wallet.
Addresses and mistakes
To receive coins you give out an address — a long string of numbers and letters. You can share it; it is not your key. If you send to the wrong address or on the wrong network, the transaction usually cannot be undone. That is why many people first send a small test amount.
The typical beginner's mistake
Taking a photo of your seed phrase and saving it in the cloud "so it doesn't get lost". Then the key to all your coins sits on a server others can reach. Whoever has the seed phrase has the coins.
How you see it in Kiggo
Kiggo is not a wallet and never touches your coins or keys — Kiggo shows prices and explains. Under Market → Crypto you see the 25 largest coins as a colour map, refreshed every 15 seconds, and each coin has three rings, "10 years at a glance" and the tax card for your country. Crypto is part of Kiggo Plus.
Related terms
Frequently asked questions
Is a crypto wallet the same as a securities account?
No. A securities account at a bank is regulated, and your shares are held separately from the bank's own money. A wallet is just the key. If your coins sit at an exchange, the protection is different — and often weaker.
What happens if I lose my phone?
If you have your seed phrase, you can restore the wallet on a new device. If you do not, the coins are lost forever. Nobody can reset it for you.
Will a real wallet ever ask for my seed phrase?
Only when you yourself restore the wallet on a new device. If a website, a message or a "support agent" asks for it, it is almost always a scam.
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-23.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
