What is a wallet?
A crypto wallet does not hold coins. It holds keys: secret numbers that let you prove a payment on a shared record belongs to you, and spend it. Once that idea clicks, the rest of this track follows from it.
The coins live on the blockchain
A blockchain is a shared record of every payment, copied on many computers around the world. Nobody owns the master copy; every copy is checked against the same rules.
Your coins are entries in that record. Your wallet is the program that keeps the keys which prove some of those entries are yours.
The blockchain (copied on many computers)
┌──────────────────────────────────────────────────────┐
│ payment … payment … PAYMENT TO YOU … payment … │
└──────────────────────────────────────────────────────┘
▲
│ "this one is mine, and I can spend it"
│
┌────────┴────────┐
│ Your wallet │
│ holds KEYS │
└─────────────────┘This is why you can lose your phone and still have your coins: they were never on the phone. What you must not lose is the keys.
Public address and private keys
A wallet has two kinds of thing: what you share and what you keep.
- Your address is what you give people so they can pay you. It is safe to share, like a bank account number on an invoice.
- Your private keys are what let you see and spend what arrives. Anyone who has them controls the funds.
Monero splits the private side into two keys, which matters later in this track:
| Item | What it lets someone do | Share it? |
|---|---|---|
| Address | Send you a payment | Yes |
| Private view key | See every payment that arrives, and its amount | Only with care; it is a privacy key |
| Private spend key | Spend your funds | Never |
| Seed phrase | Rebuild everything above, on any device | Never |
A Monero main address is a long string of letters and digits. On the real network it starts with 4. You can also make extra addresses, called subaddresses, one for each person who pays you. They all belong to the same wallet, and payers cannot tell that two of them are linked.
The seed phrase: the master backup
Keys are long numbers that nobody can copy by hand reliably. So wallets write the secret as a list of ordinary words: the seed phrase (or seed). Every key and every address of the wallet is worked out from it.
SEED PHRASE (16 or 25 words)
│
├──► private spend key ──► spend
├──► private view key ──► see incoming payments
└──► main address and every subaddress ──► receiveKilonova offers two seed formats:
| Format | Words | Good to know |
|---|---|---|
| Polyseed, 16 words | 16 | Shorter, and records when the wallet was made, so a restore scans less |
| Classic, 25 words | 25 | Works with every Monero wallet, including the official one |
A worked example: Meena writes her 16 words on paper. Her phone is stolen. On a new laptop she installs Kilonova, chooses Restore wallet, types the 16 words, and the same addresses and the same balance appear. Nothing was copied from the old phone; everything came from the words.
The same works for anyone else who finds the words.
DANGER
Anyone who has your seed phrase can take every coin in the wallet, from any device, without your password. Nobody can undo that. Write the seed on paper, keep it offline, and never photograph it, type it into a website, or send it in a chat or email.
Custodial and self-custody
There are two ways to "have" crypto:
| Custodial | Self-custody | |
|---|---|---|
| Who holds the keys | A company, such as an exchange | You |
| What you hold | An account with a username and password | The keys, through your seed |
| Forgot your password | The company can reset it | Nobody can reset anything |
| The company is hacked, closes or freezes your account | Your funds may be affected | Not affected |
| You lose your seed | Not your problem | The funds are gone |
Kilonova is a self-custody wallet. It runs on your device, Dhiva Labs never sees your keys, and there is no account. That gives you full control, and full responsibility.
Why there is no "forgot password"
Kilonova asks you for a password when you create a wallet. That password does one job: it encrypts the wallet file on this device, so someone who picks up your phone cannot open it.
Seed phrase ──────────────► works on ANY device, forever
(this is the real backup)
Wallet password ──────────► unlocks the wallet file on THIS device only
(cannot be reset by anyone)There is no server holding a copy, so there is nobody to ask for a reset. What each loss means:
| You lose | You still have | Result |
|---|---|---|
| The password | The seed | Restore from the seed on any device and set a new password |
| The device | The seed | Restore from the seed on a new device |
| The seed | The device and password | Open the wallet and write the seed down again at once (in Kilonova: Wallet options, Show seed) |
| The seed and the password | Nothing that works | The funds cannot be recovered by anyone |
Stay safe
- Treat the seed like the funds themselves. Paper, offline, out of sight.
- Your address is public; your keys and seed are not. Nobody legitimate ever needs your seed.
- No support team, app or website can "recover" a self-custody wallet. Anyone who offers to, in exchange for your seed, is stealing it.
- Learn on a test network first, with a wallet you create only for practice. Lesson 4 shows how.
In Kilonova
- Create a wallet and write down its seed: Beginner guide.
- Rebuild a wallet from its seed: Restore a wallet.
- See the seed and keys of a wallet: Show seed and Show keys in Manage several wallets.
Check yourself
Question 1 of 6
What does a crypto wallet actually hold?
What you learned
- Coins are entries on the blockchain; a wallet holds the keys that control them.
- Your address is for receiving and safe to share; the private keys and seed are not.
- The seed phrase rebuilds the whole wallet on any device. Losing it, or leaking it, cannot be undone.
- In a self-custody wallet the password only protects the device, and nobody can reset it.