Crypto wallet, address, private keys… does it still make sense?

You often hear the terms wallet, address, keys, and seed phrase used interchangeably. It’s no surprise that this can get confusing. Yet these are the fundamental concepts of crypto and blockchain. Time to explain them clearly, using Robin as an example. She has been buying and selling crypto for several years.

Public Address
Robin is about to receive crypto from Chris. For that, Chris needs Robin’s public address, recognizable as a long string of letters and numbers. In her wallet app on her phone, Robin clicks “Receive.” The app generates a public address that she can safely share with Chris.

The address does not have a name attached to it like a traditional bank account. It is simply an address on the blockchain. Chris sends the agreed amount to that address. Because Robin provided the address, Chris knows he is sending the crypto to her. You can compare it to an IBAN: you can safely share it to receive money.

Wallet
The app on Robin’s phone is a software wallet. With it, she can send and receive crypto, view her total balance and its value in euros, and manage multiple types of crypto. The wallet also keeps track of which addresses belong to Robin and automatically generates new addresses when needed.

A wallet can be a mobile app, a desktop program, or a hardware wallet. For example, a USB device that you can store offline.

It is important to understand that your crypto is not stored “in” your wallet. Crypto always exists on the blockchain. The blockchain ledger records how much crypto is associated with each address. The wallet simply manages the keys that prove a user has access to that crypto.

Private Keys
These keys are called private keys. A private key must be kept secret. It is used to digitally sign transactions. Whoever controls the private key can spend the crypto linked to that address.

If you lose your private key, you lose access to your crypto. If someone else gains access to it, they can spend your crypto. That’s why secure management is crucial. Think of it like your PIN code or your signature: you never share it.

Seed Phrase
There is something even more important than your private keys. In a wallet, the number of addresses, and therefore private keys, can grow quickly. A seed phrase is essentially the master key of your wallet from which all private keys are derived. A seed phrase usually consists of 12 or 24 words.

With this seed phrase, you can restore your wallet on another device and recover access to all your addresses and balances. Whoever has your seed phrase has full control over your wallet and everything in it. So keep it secret.

Remember this
You can share your public address. Your wallet helps you manage your addresses and access to your crypto. Your private key and seed phrase must always remain secret.

If someone asks for your seed phrase to “verify” your wallet, never share it.

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By Anje Roosjen | February 16, 2026