There's always been a gray area when it comes to knowing where to hold crypto assets and where to trade them. This confusion is oftentimes due to the lack of sufficient knowledge in distinguishing which is which. Although often intertwined, wallets and exchanges are not the same thing.

Crypto Wallets can be anything from accounts on centralized exchanges to hardware (cold) wallets, and they are designed to present a record of your account and holdings on the decentralized ledger in a comprehensive interface.

They can be split broadly into two types: custodial wallets and non-custodial wallets. Recovery phrases and private keys for non-custodial wallets belong to the wallet owner. This guarantees that owners of non-custodial wallets maintain complete control over their wallets and assets because the keys are not kept on any database and can only be obtained by the owner.