Home Compare Wallets Security Guide FAQ Glossary

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Wallet Basics

A cryptocurrency wallet is a digital tool that allows you to store, send, and receive cryptocurrencies like Bitcoin, Ethereum, and many others. Unlike traditional wallets, crypto wallets don't actually store your coins—they store the private keys that give you access to your crypto on the blockchain.

Hot wallets are connected to the internet and include browser extensions, mobile apps, and desktop software. They're convenient for daily transactions but more vulnerable to hacks. Cold wallets (hardware wallets) store your keys offline, providing maximum security for long-term holdings.

Backing up your wallet is crucial! When you create a wallet, you'll receive a recovery phrase (usually 12 or 24 words). Write this down on paper—never digitally—and store it in a secure location. This phrase can restore your wallet on any device if your phone is lost or stolen.

Gas fees are transaction costs paid to blockchain validators for processing your transactions. On Ethereum, gas fees vary based on network congestion. Layer 2 solutions like Arbitrum and Optimism offer lower fees while maintaining security.

Yes! As long as you have your recovery phrase (seed phrase), you can restore your wallet on a new device. This is why it's absolutely critical to store your recovery phrase safely. Without it, your funds are permanently lost.

A seed phrase (recovery phrase) is a series of 12-24 words that serves as the master key to your wallet. It can restore your entire wallet including all accounts and funds. Never share it, never store it digitally, and never enter it on any website.