A crypto wallet is the tool that holds the keys controlling your funds on a blockchain, and it is the starting point for using on-chain prediction markets.
Keys, Not Coins
A wallet does not store coins itself. It stores keys that prove you control an address on the blockchain.
Custodial and Self-Custody
Some services manage keys for you; with self-custody, you hold them. Self-custody gives control but also full responsibility.
Recovery Phrases
A recovery phrase can restore a wallet. Anyone who sees it can take your funds. Never share it or type it into websites or chats.
Worked Example
A new trader sets up a self-custody wallet and writes the recovery phrase on paper stored at home. Later, a message offers "support" and asks for the phrase. They recognise it as a scam and ignore it, keeping their funds safe.
Key Takeaways
- Wallets hold keys that control funds.
- Self-custody means full responsibility.
- Never share your recovery phrase.
- Real support never asks for it.