06-19-2021, 01:50 PM
A wallet doesn't hold any coins!
<!-- SC_OFF --><div class="md"><h1>Your wallet does not hold any coins</h1> <p>If you are active in crypto-related subreddits you'll soon notice a (understandable) misconception:</p> <p>New users tend to think that their coins are stored in their wallet. Therefore, they ask questions like: "what happens to my coins if I delete my wallet? How can I move my voins to my new PC etc.</p> <p>I find it necessary to stress the follwing fact:</p> <p><strong>Your wallet does not hold any coins. Your coins are not stored in your wallet</strong></p> <p><strong>Your wallet does not hold any coins. Your coins are not stored in your wallet</strong></p> <p><strong>Your wallet does not hold any coins. Your coins are not stored in your wallet</strong></p> <p>​</p> <h1>But where are my coins?</h1> <p>Coins are "stored" in the blockchain. The blockchain is a really long list of every transaction between (coin) adresses. Since all transactions are known, and adresses are public, the amount of coins at a given adress is known, too.</p> <p>Think of a coin adress as a letterbox made of (indestructable) glass: everybody can see how much is inside, everybody can stuff coins into it, but <strong>only the person(s) with the private key can take something out.</strong></p> <h1>But what does a wallet do?</h1> <p>The most important feature of a wallet is to (securely) hold the (private) keys to the corresponding adresses on the blockchain. Therefore it allows you to access (sent/spent) your coins. <strong>Think of it like a big keychain.</strong></p> <p>To generate keys and adresses your wallet uses a <strong>seed phrase of 12 (or 24) english words</strong>. Entering the same seed phrase always generates the same keys/adresses. Setting up a new wallet starts with a random seed phrase.</p> <h1>Questions?</h1> <ul> <li>How do I move my coins between devices/different wallet software? -> <em>You just enter your current seed phrase into the new software/ the same software on another device.</em></li> <li>So do I lose my coins if I delete my wallet? -> <em>No, since they are still in the blockchain. Without a wallet you are not able to do anything with your coins, though</em> [edit 3]: The advice does not apply to:</li> <li>non-deterministic (or non-HD) wallets</li> <li>multiwallets</li> <li>imported keys (thanks <a href="/u/vsync">u/vsync</a>)</li> </ul> <p>​</p> <ul> <li>This means I can have the same wallet on different devices (i.e. pc/tablet/phone)? -> <em>Yes. Be aware, that you have to keep all those devices secure.</em></li> <li>So if lose my seed phrase, my coins are gone? -> <em>Your wallet will show you your seed phrase, so you are good as long as it is still installed. If you neither have your wallet or your seed phrase - then yes, nobody can access them anymore.</em></li> <li>Does that mean that anybody who knows my seed phrase can move my coins? -> <em>Yes!!</em></li> </ul> <h1>TLDR? [edit]</h1> <ul> <li>coins are stored at adresses on the blockchain, not in a wallet</li> <li>a wallet gives you access to your blockchain adresses</li> <li>the whole access thing is "compressed" in a 12 (or 24) words seed phrase</li> </ul> <p>Therefore:</p> <ul> <li>protect your seed phrase!</li> <li>don't lose your seed phrase!!</li> <li>everybody who asks for your seed phrase is a scammer!!!</li> </ul> <p>[edit2]</p> <p>on behalf of <a href="/u/vsync">u/vsync</a> the following addendums:</p> <ul> <li>"Best advice is <strong>read your platform's documentation</strong> and try test restores (again, good advice for any backup)."</li> <li>"If your wallet software offers to let you back up private keys, consider doing so. Backups in general are a great idea too."</li> </ul> <p>* </p> <p>​</p> <p>And thanks for all the awards
</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/niehle"> /u/niehle </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/o2zhtt/a_wallet_doesnt_hold_any_coins/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/o2zhtt/a_wallet_doesnt_hold_any_coins/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><h1>Your wallet does not hold any coins</h1> <p>If you are active in crypto-related subreddits you'll soon notice a (understandable) misconception:</p> <p>New users tend to think that their coins are stored in their wallet. Therefore, they ask questions like: "what happens to my coins if I delete my wallet? How can I move my voins to my new PC etc.</p> <p>I find it necessary to stress the follwing fact:</p> <p><strong>Your wallet does not hold any coins. Your coins are not stored in your wallet</strong></p> <p><strong>Your wallet does not hold any coins. Your coins are not stored in your wallet</strong></p> <p><strong>Your wallet does not hold any coins. Your coins are not stored in your wallet</strong></p> <p>​</p> <h1>But where are my coins?</h1> <p>Coins are "stored" in the blockchain. The blockchain is a really long list of every transaction between (coin) adresses. Since all transactions are known, and adresses are public, the amount of coins at a given adress is known, too.</p> <p>Think of a coin adress as a letterbox made of (indestructable) glass: everybody can see how much is inside, everybody can stuff coins into it, but <strong>only the person(s) with the private key can take something out.</strong></p> <h1>But what does a wallet do?</h1> <p>The most important feature of a wallet is to (securely) hold the (private) keys to the corresponding adresses on the blockchain. Therefore it allows you to access (sent/spent) your coins. <strong>Think of it like a big keychain.</strong></p> <p>To generate keys and adresses your wallet uses a <strong>seed phrase of 12 (or 24) english words</strong>. Entering the same seed phrase always generates the same keys/adresses. Setting up a new wallet starts with a random seed phrase.</p> <h1>Questions?</h1> <ul> <li>How do I move my coins between devices/different wallet software? -> <em>You just enter your current seed phrase into the new software/ the same software on another device.</em></li> <li>So do I lose my coins if I delete my wallet? -> <em>No, since they are still in the blockchain. Without a wallet you are not able to do anything with your coins, though</em> [edit 3]: The advice does not apply to:</li> <li>non-deterministic (or non-HD) wallets</li> <li>multiwallets</li> <li>imported keys (thanks <a href="/u/vsync">u/vsync</a>)</li> </ul> <p>​</p> <ul> <li>This means I can have the same wallet on different devices (i.e. pc/tablet/phone)? -> <em>Yes. Be aware, that you have to keep all those devices secure.</em></li> <li>So if lose my seed phrase, my coins are gone? -> <em>Your wallet will show you your seed phrase, so you are good as long as it is still installed. If you neither have your wallet or your seed phrase - then yes, nobody can access them anymore.</em></li> <li>Does that mean that anybody who knows my seed phrase can move my coins? -> <em>Yes!!</em></li> </ul> <h1>TLDR? [edit]</h1> <ul> <li>coins are stored at adresses on the blockchain, not in a wallet</li> <li>a wallet gives you access to your blockchain adresses</li> <li>the whole access thing is "compressed" in a 12 (or 24) words seed phrase</li> </ul> <p>Therefore:</p> <ul> <li>protect your seed phrase!</li> <li>don't lose your seed phrase!!</li> <li>everybody who asks for your seed phrase is a scammer!!!</li> </ul> <p>[edit2]</p> <p>on behalf of <a href="/u/vsync">u/vsync</a> the following addendums:</p> <ul> <li>"Best advice is <strong>read your platform's documentation</strong> and try test restores (again, good advice for any backup)."</li> <li>"If your wallet software offers to let you back up private keys, consider doing so. Backups in general are a great idea too."</li> </ul> <p>* </p> <p>​</p> <p>And thanks for all the awards
</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/niehle"> /u/niehle </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/o2zhtt/a_wallet_doesnt_hold_any_coins/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/o2zhtt/a_wallet_doesnt_hold_any_coins/">[comments]</a></span>Kind Regards R