How It Works
Every crypto wallet has a public key (your address — share it freely to receive funds) and a private key (your secret — never share it). When you send a transaction, your wallet signs it with your private key; the network verifies the signature using your public key. Wallets are categorized as: Hot wallets (software, connected to internet — MetaMask, Phantom) for active use; Cold wallets (hardware, offline — Ledger, Trezor) for long-term storage.
Why It Matters for Investors
Understanding wallets is fundamental to crypto ownership. Exchanges like Coinbase or Binance are "custodial" — they hold your private keys, meaning you don't truly own your coins (as FTX users learned in 2022). Self-custody wallets give you full control, but also full responsibility. The phrase "not your keys, not your coins" summarizes this perfectly.
TRUE AI & Crypto Wallet
TRUE AI can analyze any public wallet address — providing a breakdown of holdings, recent activity, PnL history, and risk assessment. Ask TRUE AI to review your portfolio allocation or identify potential risk concentrations.
Try This Prompt in TRUE AI
"Analyze this wallet: [address]. What are the top holdings, recent activity, and any red flags I should know about?"
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