Crypto wallets : an intro
Lars Heerink • 24 Jul 2025
Crypto wallets will be an important part of the internet and financial sector of the future. It will shape how we interact with apps, sites and our finances. An intro on what they are and how to use them is crucial.
Over the past few years, you’ve probably heard terms like “Bitcoin,” “NFTs,” or “blockchain” tossed around in the news or on social media. Even if you’re not deeply involved in the world of cryptocurrency, it’s hard to miss the buzz. One of the key elements to this growing digital world that’s becoming especially important is your crypto wallet. For Blockcentral, wallets are essential, as the coins of a crypto investment fund are held on those wallets.
If you're not familiar with what a crypto wallet is or why it matters, don't worry. This article will give you an intro in simple terms, and show you why crypto wallets could soon become just as common as email accounts or banking apps.
What is a crypto wallet?
A crypto wallet is a tool that lets you store and manage your digital money, think of it like your bank app, your e-mail and public record in one. You can store things like Bitcoin, Ethereum, or other cryptocurrencies. But unlike a regular wallet that holds cash, a crypto wallet doesn’t actually store money inside it. Instead, it stores your private keys, which are like secret passwords that give you access to your digital money on the internet.
Think of it like this:
- Your crypto wallet is like a mailbox.
- Your cryptocurrency lives out there on the blockchain (see our blog about blockchains).
- Your private key is the only thing that lets you open your mailbox and access what’s inside.
There are different types of crypto wallets:
- Mobile apps (like Phantom)
- Browser extensions (like metamask or Keplr)
- Hardware devices, such as a USB stick (like Ledger)
Why are crypto wallets becoming more important?
At first glance, a crypto wallet just seems like a way to hold digital coins. But that’s only part of the story. Wallets are quickly becoming much more than that. Here’s why:
Your passport to the new internet
There’s a new version of the internet being built called Web3. In this version, people can use apps, play games, buy art, and send money, without having to sign in with Google, Facebook, or a bank account.
Instead of creating a new login for every website, you can connect your crypto wallet.
That means your wallet becomes your digital passport for this new version of the internet. You stay in control of your own identity and data.
Own digital items
In today’s world, most things online don’t really belong to you. If you buy a movie on a streaming service or earn points in a game, you can’t usually take them somewhere else.
But with a crypto wallet, you can own digital items that are truly yours. Think of digital artwork, game items, or even digital music. For which most of these usecase the NFT (see our blog about NFT’s) technology i used to confirm ownership and authenticity. These items live in your wallet, and you can trade them, sell them, or use them across different platforms.
Decentralized finance
There’s a growing area of technology called DeFi (short for “Decentralized Finance”). With your wallet, you can:
- Earn interest on your digital money
- Borrow or lend money
- Exchange currencies
No need to visit a bank, sign paperwork, or even reveal your real name. It all happens directly through your wallet and online tools. With your digital identity there also comes a digital past on which you can build credit scores and optimize certain features based on good behaviour.
Use them as your digital identity
In the future, your crypto wallet might hold more than money. It could store:
- Proof that you attended an online course
- A certificate from a school or training program
- Tickets to an event
- Membership in a club or online group
Instead of dozens of logins, your wallet might be the one thing you use to prove who you are online. In web3 there are already thousands of people that affiliate themselves with their NFT as a persona.
They’re getting easier to use
Crypto used to be complicated. You needed to learn a lot of technical terms and be very careful not to lose your passwords. But things are changing.
Today’s wallets are getting easier, safer, and more user-friendly. Some apps are as simple as using online banking or a shopping app. You don’t need to be a tech expert anymore.
Companies are working hard to make wallets more secure, easier to recover, and better for everyday use.
Do we all need a crypto wallet?
In the same way that email became essential in the 1990s and smartphones in the 2010s, crypto wallets could become a key part of everyday digital life in the coming years.
For now they open up the world to web3 and all it has to offer. But those use cases are still only web3 based and not yet usefull in everyday life.
Whether it’s storing your digital money, accessing online services, or proving who you are in a secure way, wallets are quickly becoming more useful and more important.
Crypto wallets are more than a place to store coins. They’re tools that give you control over your digital life, from your money to your identity to the way you interact with websites and apps.
As technology continues to evolve, these wallets could play a major role in how we bank, work, and connect online.
So if you're curious about the future of the internet or you want to hear our thoughts on how we think crypto wallets will be used in the future?
Want to know more about how wallets are an integral part of crypto? Or curious about how we look at web3?
Reach out through the buttons below, we’re always happy to chat.