What Is a Crypto Wallet and How Do You Use One?

If you’re new to crypto, one of the first things you’ll hear about is a crypto wallet. But what exactly is it? Where do you get one? And why do you need it?

Here’s a short and easy breakdown of how to use a crypto wallet.

Please note: This article does not constitute investment advice. Laws governing crypto, derivatives, and other forms of trading and investments as well as taxation vary by region and are subject to change. You are responsible for complying with the laws in your jurisdiction. Ouinex’s services and offers, including those mentioned in this article if any may vary by location and are subject to change. All investments carry risk.

Key Takeaways

A crypto wallet stores your keys to access your crypto not your actual coins
Hot wallets are connected to the internet; cold wallets are offline and more secure
Custodial wallets are managed by platforms like Ouinex and easiest to use when actively trading; non-custodial wallets give you full control but if you lose your recovery phrase, you’ve lost your crypto
Use hot wallets for active trading and cold wallets for long-term storage
Ouinex gives you secure custodial storage with full withdrawal access

What Is a Crypto Wallet?

A crypto wallet is a tool that lets you store, receive, and send cryptocurrencies.

Unlike a regular wallet, it doesn’t hold physical coins. Instead, it stores the private keys that give you access to your crypto on the blockchain.

Think of it as your digital keychain that unlocks your crypto. If someone else has access to your private keys, they can take your crypto. So your wallet = your security.

If that’s too technical, think of it like a digital bank account where you store digital currencies. That is, by far, the easiest explanation! Though, technically you store the access codes (i.e. the keys) to your crypto on the blockchain.

Public and Private Keys

To authorize crypto transactions for the crypto you hold (i.e. the crypto you own), you need a key. This is both proof of ownership and what enables you to make transactions. That’s your private key. No one else should have it or they could spend or transfer your funds (granted they manage to get into your wallet in the first place).

The public key, on the other hand, is like an account number anyone with the key can send crypto to your wallet.

Each token or coin operates on a specific blockchain and comes with its own key pair. You can have a wallet storing your keys for your BTC holdings, ETH holdings, etc. And if you buy crypto on different exchanges and send it to different wallets, you can end up with several sets of keys for BTC alone.

So, to sum this up: What does your wallet store? Your keys both public and private. The public one is used to receive crypto. The private one is what unlocks it proving you own the crypto and enabling you to spend or send them.

Private key = proof of ownership + required to authorize transactions
Public key = used to receive funds
Wallets store keys, not the crypto itself
Multiple wallets = multiple key pairs for same token

Types of Crypto Wallets

There are two main types of wallets:

1. Hot Wallets (Connected to the Internet)

Examples: mobile apps, desktop wallets, browser extensions (e.g. MetaMask, Trust Wallet)
Easy to access and use for trading, sending, or DeFi
Less secure if your device gets hacked

2. Cold Wallets (Offline)

Examples: hardware wallets like Ledger or Trezor, paper wallets (literally just a printout with your keys on it)
Not connected to the internet so they can’t be hacked remotely
Best for long-term storage of larger amounts

Pro tip: use both. Keep a small amount in a hot wallet for trading, and the rest in a cold wallet for safety.

Custodial vs Non-Custodial Wallets

Custodial Wallets (Ouinex, Binance, OKX)

Managed by exchanges or platforms (e.g. wallets on Ouinex)
Easy to use and recover if you lose access
The platform controls your keys, not you

Non-Custodial Wallets (MetaMask and Trust Wallet)

You control your keys and security
If you lose your recovery phrase (seed phrase), your funds are gone. No password reset. No help desk fix.
Offers full ownership but full responsibility too

If you’re new to crypto, custodial wallets like those on Ouinex are a good place to start. They’re also good if you’re constantly trading. When you’re ready to go deeper into DeFi or long-term holding, consider setting up a non-custodial wallet.

How to Use a Crypto Wallet

Here’s how it usually works:

Set up a wallet (either through an exchange like Ouinex, or by downloading a wallet app)
Secure your recovery phrase this is your backup key. Write it down. Don’t screenshot it. Don’t store it online.
Fund your wallet receive crypto by copying your wallet’s public address and sending crypto to it, or deposit fiat on a platform like Ouinex and convert it to crypto.
Use your crypto to stake, trade, or EARN on the platform if you signed up to a custodial wallet on a trading platform
Send crypto by pasting someone else’s wallet address and confirming the transaction, or withdraw crypto to your own non-custodial wallet.
Double-check everything before sending mistakes can’t be undone.

Do You Need a Wallet to Use Ouinex?

No external wallet is required. When you trade on Ouinex, your crypto is stored securely in a custodial wallet.

You can also withdraw your funds to your own wallet anytime. Whether you prefer the convenience of keeping it on the platform or want full control with a non-custodial wallet, the choice is yours.

FAQs: Crypto Wallets

Do I need a wallet to start using crypto?
Yes, but if you’re using an exchange like Ouinex, one is created for you automatically.

Are crypto wallets safe?
Yes, as long as you protect your recovery phrase and use trusted platforms or hardware devices.

What happens if I lose my wallet?
If it’s a custodial wallet, the platform can help recover access. If it’s non-custodial and you lose your recovery phrase your funds are gone.

Can I use the same wallet for multiple cryptos?
Many wallets support multiple cryptocurrencies, but always check compatibility first.

Can I transfer crypto from Ouinex to a personal wallet?
Yes. You can withdraw crypto from Ouinex to any compatible wallet at any time.