Many beginners have misunderstood the concept. Your crypto assets are not physically/digitally "saved" in your wallet whether it is a cold (hardware) wallet or hot (software) wallet.

The Wallet vs Web Browser Concept

Let's compare a wallet to a web browser.

When we open a web browser and point to an URL called disney.com, we see the colorful website of Disneyland. So, is Disney's website stored in the browser? Of course not. The website is stored in the remote server.

The same goes with a crypto wallet. A crypto wallet is simply an app that allows users to retrieve and manage the information of their digital assets. When we configure a wallet, the private key generates a public key, which then generates a public address. We are telling the wallet a "crypto URL" to point to. With this information, the wallet knows where to retrieve our cryptocurrency records from the public ledger which resides in the blockchain.

Your Assets Not in Your Hands

Unlike the traditional wallets that we carry in our pockets, crypto wallets do not physically contain our cryptocurrencies. They are actually on the blockchain.

When we authorize a transaction from a wallet, all we do is sign the ownership of that cryptocurrency to the recipient's wallet address. In other words, the blockchain records permanently and immutably that the coins are now the recipient's property.

Multiple Wallets

That is the reason why we can use multiple wallets at the same time. Regardless if you are using Metamask or Trust Wallet, both apps will show you the same numbers. We can even install browser extensions and view the same information on our browsers. Similarly, we may use either Chrome, Firefox, Safari or Edge to view a website. All browsers will show the same content.

 

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