Just like your cash, cards, and ID, your cryptocurrency assets live in something called a “wallet”. Most all forms of digital money implement this concept in some form, and understanding wallets is critical to safely storing and using your favorite digital currency.
Much like your physical wallet, your Bitcoin, Monero, or Ethereum wallet gives you direct access to the funds inside. A crypto-wallet isn’t like a credit card – if a stranger gets a hold of it, you can’t cancel it. Much like cash, the money stolen would be theirs!
But how does this work? How can a digital asset act like cash when all other forms of digital monetary transactions (credit cards, bank transfers, PayPal) can be “cancelled” if stolen? We must first understand a bit about what a “private key” is, and why who controls it is so important to the security of your cryptocurrency funds.