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Guides
September 8, 2026 · 7 min read · NepaliCrypto Editorial
The most misunderstood fact in crypto: coins never leave the blockchain. A wallet stores private keys — cryptographic secrets that prove you control certain addresses. Lose the keys, lose the funds. There is no password reset, no customer support line.
Wallets come in two broad types. Custodial wallets (like exchange accounts) hold keys on your behalf — convenient, but you are trusting the company. Self-custody wallets give you the keys directly, usually as a 12 or 24-word recovery phrase you write down and protect.
Hardware wallets — small physical devices that keep keys offline — are the gold standard for significant amounts. They sign transactions without ever exposing keys to an internet-connected computer.
The golden rules: never share your recovery phrase with anyone (no legitimate service will ever ask), never type it into a website, and never store it in cloud notes or email. Write it on paper, store it somewhere safe, and consider a second backup in a separate location.
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