Crypto wallet
Software or hardware that stores the keys controlling your crypto and lets you send and receive it.
A crypto wallet is a tool that holds the keys controlling your coins and lets you send and receive funds. The name misleads people. A wallet does not store coins. Your coins are entries on the blockchain, and the wallet stores the private key that proves you own them and authorises spending.
Think of it as a keyring, not a money box. Whoever holds the key controls the funds. Lose the key and you lose access, even though the coins still sit on the ledger for everyone to see.
Wallets come in two broad shapes. A hot wallet runs on a device connected to the internet, such as a phone app or browser extension, and is handy for frequent spending. A hardware wallet is a physical device that keeps keys offline and signs transactions without exposing them, which suits larger balances you rarely touch.
There is a second split worth knowing. With a custodial wallet, an exchange holds the keys for you, so you trade convenience for control. With a non-custodial wallet, only you hold the keys. That gives you full control and full responsibility. Banxa is an on-ramp: it sells you crypto and sends it to a wallet address you supply, so you choose where the funds land.
When you create a non-custodial wallet, it generates a seed phrase, usually 12 or 24 words. Those words can rebuild every key in the wallet, so back them up offline and never type them into a website. The cautionary tale is Stefan Thomas, who lost access to 7,002 BTC after forgetting the password to the drive holding his keys. The coins are still on the chain. He just cannot reach them.
Most wallets are free to install. The real cost is care. Verify the receiving address before every transfer, keep your backup somewhere fire and water cannot reach it, and treat the device like the cash it controls.