Beginner

Wallets & Addresses

Beginner Track 05

Wallets Don't Store Coins

Bitcoin lives on the blockchain. A wallet is a keychain that holds the key (private key) to access those coins.

What You'll Learn

  • The difference and relationship between private key, public key, and Bitcoin address
  • How digital signatures authenticate transactions
  • Hot wallet vs hardware wallet — when to use which
🏦

Bank Account

Central server manages balance

Account No.123-456-789Address anyone can know
Password●●●●●●Managed by bank (can be hacked)
BalanceStored in bank DBBank can freeze or seize
RecoveryID + bank visitRequires bank's permission

💡 Private Key = Bank Vault Master Key

Anyone with the private key can spend all Bitcoin at that address. There is no bank, so there is no lost-key report or recovery. Keeping your private key is keeping your assets.