# What Is a Crypto Wallet?

The word "wallet" is a little misleading. A crypto wallet doesn't *hold* your coins the way a leather wallet holds cash. Your coins live on a public ledger called a **blockchain** — they never leave it. What a wallet actually stores are the **keys** that prove the coins are yours and let you move them.

So the real question isn't "where are my coins?" It's **"who controls the keys?"**

## Custodial vs. self-custody

- **Custodial** — A company (an exchange like Coinbase or Binance) holds the keys for you. You log in with a password; they can freeze, lose, or be ordered to hand over your funds. Convenient, but you're trusting them. This is closer to a bank account than to cash.
- **Self-custody** — *You* hold the keys. No company can freeze or move your funds, and none can lose them for you either. The responsibility — and the control — is yours. The crypto saying for this is **"not your keys, not your coins."**

A KeepKey is a self-custody wallet. That's the entire point of owning one.

## Hot wallets vs. cold wallets

Self-custody wallets come in two flavors, defined by whether the keys ever touch the internet:

- **Hot wallet** — Software on an internet-connected device (a phone app, a browser extension like MetaMask). Convenient for everyday use, but the keys live on a device that malware and websites can reach.
- **Cold wallet** — Keys stored on a device that stays offline. A **hardware wallet** is the most common kind: the keys are generated inside a dedicated device and never leave it, even when you plug it into an infected computer.

KeepKey is a **hardware (cold) wallet**. Your keys are created on the device, never exported, and every transaction must be approved with a physical button press.

## On your KeepKey

- The device generates your keys internally and never reveals them — see [Keys & Addresses](/docs/learn/keys-and-addresses).
- You hold the only backup: your [recovery phrase](/docs/learn/recovery-phrase).
- Because it's non-custodial, KeepKey the company can't move, freeze, or recover your funds — and neither can anyone who compromises your computer. See the [Security](/docs/security) page for the full threat model.
- Ready to set one up? Head to the [Introduction](/docs) and the [Desktop Application](/docs/desktop).