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A common description of a crypto wallet is that, just like a physical wallet holds your money, a crypto wallet holds your cryptocurrencies. But that description is misleading, and it makes wallets harder to understand than they need to be. A crypto wallet does not actually hold anything. A better mental model is a key ring. A wallet is a tool that manages cryptographic keys. Those keys are what give you control over assets recorded on the blockchain. The blockchain itself keeps track of who owns which tokens. Ownership is recorded publicly, and the rules for changing that ownership are enforced by the network. Your wallet holds the keys that allow you to request those changes. Each wallet is associated with a pair of keys. One key is used as an address that others can send tokens to. The other key is used to sign transactions that move tokens. When a transaction is signed, the blockchain verifies the signature and updates its record of ownership. Without the correct key, ownership cannot change. This is why wallets matter. There is no account to reset, no customer support to reverse a transfer, and no central authority approving transactions. Control lives entirely with whoever holds the keys. Because of this design, wallets are censorship resistant. No exchange, company, or government can freeze or seize assets by default. The only way to move funds is with the correct cryptographic signature. This also means responsibility is higher. If someone gains access to your keys, they gain control over your assets. If keys are lost, access is lost. A crypto wallet is not a bank account and not a container. It is a key manager that gives you direct, onchain ownership.