Wallet and Address
A Bitcoin wallet is software or hardware that manages private keys to access digital assets, while an address is a public identifier for receiving Bitcoin payments.
What is Wallet and Address?
A Bitcoin wallet is a software application or hardware device that stores and manages private keys, public keys, and Bitcoin addresses to enable users to send, receive, and track digital assets on the Bitcoin blockchain. Private keys, typically 256-bit random numbers, cryptographically secure access to Bitcoin funds, while public keys (derived via ECDSA) generate addresses. Together, wallets and addresses enable secure, pseudonymous Bitcoin transactions.
Bitcoin Wallets come in types: software wallets (e.g., Electrum, BlueWallet) run on devices like phones or computers, requiring 5-50 MB for lightweight clients or 600+ GB for full nodes like Bitcoin Core; hardware wallets (e.g., Ledger Nano X, Trezor Model T) store keys offline for enhanced security, costing $70-$150 as of 2025; and paper wallets, printed key pairs, now largely obsolete due to risks of loss or theft. Wallets do not store Bitcoin itself but enable signing transactions, with 90% of users opting for custodial wallets (e.g., Coinbase) versus non-custodial ones for self-sovereignty.
Related Terms
APY (Lending)
The annualized percentage yield in DeFi lending, accounting for interest compounding.
Digital Asset Treasury (DAT)
Public companies that strategically accumulate digital assets(primarily BTC or ETH) as core treasury reserves to drive shareholder value and provide digital asset market exposure.
Consensus Algorithm
A consensus algorithm is a mechanism used by a blockchain network to achieve agreement among nodes on the validity and order of transactions in a decentralized system.
Block and Block Height
A block is a collection of transactions recorded on a blockchain, and block height is the sequential number of a block in the chain, starting from the genesis block.
Algorithmic Stablecoin
A digital asset maintaining value through supply adjustments without direct collateral.
AML/CFT
Anti-Money Laundering and Countering the Financing of Terrorism regulations for financial integrity.