Understand crypto before you hold it
A clear, independent guide to crypto wallets, tokens, blockchain networks and exchanges. We explain how they work and how they differ, and we cover the mistakes that cost people money.
Explore the guide
Four sections that cover the whole crypto landscape.
Tokens
Bitcoin, Ethereum, stablecoins, DeFi and meme tokens: what each one is and what it is used for.
33 assetsNetworks
Layer 1 blockchains and Layer 2 rollups, with their address formats, token standards and fees.
25 networksWallets
Hardware, mobile, browser and desktop wallets, each with its pros, cons and supported chains.
26 walletsExchanges
Centralized and decentralized exchanges, how they differ, and what to check before you use one.
27 exchangesCrypto basics in five minutes
Crypto can look complicated, but most of it comes down to four ideas. Once they make sense, the rest of this guide will too.
1. A blockchain is a shared ledger
A blockchain is a public record of transactions kept by thousands of independent computers. Nobody can quietly edit it, and anyone can check it. Bitcoin, Ethereum and Solana are all blockchains, which this guide also calls networks.
2. Coins and tokens are the assets on it
Each blockchain has a native coin that pays transaction fees, such as BTC, ETH or SOL. Developers can also create tokens on top of a blockchain with smart contracts. Stablecoins like USDT, governance tokens like UNI and meme tokens like PEPE all work this way. See the full list on the tokens page.
3. A wallet holds your keys, not your coins
Your crypto never leaves the blockchain. A wallet stores the private key that proves you own it and lets you sign transactions. Most wallets back up that key as a recovery phrase (seed phrase) of 12 or 24 words. Whoever has those words controls the funds.
4. Exchanges are where crypto is bought and swapped
Exchanges convert money into crypto and one crypto into another. Centralized exchanges (CEX) are companies that hold your funds for you. Decentralized exchanges (DEX) are smart contracts you use straight from your own wallet.
Custodial vs. non-custodial: the key choice
Every way of holding crypto falls into one of two groups. Knowing which one you are using matters more than which brand you pick.
| Custodial | Non-custodial (self-custody) | |
|---|---|---|
| Who holds the keys | A company (exchange or app) | You |
| Forgotten password | Reset through support | Restore with your recovery phrase. Without it, funds are lost. |
| Main risk | Company hack, insolvency or account freeze | Losing your phrase, phishing, malware |
| Best for | Active trading, beginners buying small amounts | Long-term holding, DeFi, full control |
| Examples | Accounts on centralized exchanges | Hardware wallets, MetaMask, Trust Wallet, Phantom |
Seven security rules that prevent most losses
🔒 Never share your recovery phrase
No real support agent, wallet or exchange will ever ask for it. Anyone who asks is a scammer.
📝 Back it up offline
Write the phrase on paper or stamp it on metal. Never keep it in screenshots, cloud notes, email or chat.
🌐 Check the network
Before sending, confirm that the sender and the receiver use the same network, for example USDT on Tron versus USDT on Ethereum.
🧪 Send a test amount first
Send a small transaction to a new address first. A few cents in fees can save the full amount.
🎣 Beware of fake apps and sites
Install wallets only from official app stores and official websites. Look out for look-alike domains in search ads.
✍️ Read what you sign
Malicious "approve" or "permit" signatures can drain a wallet. Revoke token approvals you no longer need.
🛡️ Use 2FA on exchanges
Use an authenticator app or a security key, not SMS, and turn on withdrawal address allowlists.
Which wallet type fits you?
Hardware wallet
A physical device that keeps keys offline. Suited to savings and larger amounts. Examples include Ledger, Trezor, Keystone and BitBox02.
Mobile wallet
A phone app for payments, small balances and on-the-go use, such as Trust Wallet, Phantom or Tonkeeper.
Browser extension
A wallet that connects to decentralized apps from your browser, such as MetaMask or Rabby. Pairing it with a hardware wallet adds safety.
Multisig / smart account
A wallet that needs several keys to approve a transaction. Suited to teams, DAOs and large holdings. Safe is a common example.
Frequently asked questions
What is a crypto wallet?
A crypto wallet is software or a device that stores the private keys controlling your crypto. The coins themselves live on the blockchain; the wallet proves you own them and lets you sign transactions.
What is the difference between a coin and a token?
A coin is the native asset of its own blockchain, like BTC on Bitcoin or ETH on Ethereum. A token is created by a smart contract on top of an existing blockchain, like USDT or UNI on Ethereum.
Is a hardware wallet safer than an app?
Generally yes. A hardware wallet keeps private keys on a separate device that never exposes them to your computer or phone, which protects against most malware. You still need to protect your recovery phrase.
What happens if I send crypto on the wrong network?
Funds sent on a network the recipient does not support may be lost or require a costly manual recovery. Always check that the sender and the receiver use the same network before you send.
Should I keep crypto on an exchange?
Keeping crypto on an exchange is convenient for trading but means the exchange controls the keys. For long-term holdings, many people move funds to a self-custody wallet they control.