What is a Web3 wallet?

Having a blockchain wallet on an exchange like Binance only allows you to trade and interact within the limits of that platform. While exchange wallets are convenient for quick buying, selling, and swapping of cryptocurrencies, you don’t actually have full control over your assets. The exchange holds custody of your private keys, meaning that ultimately, they control access to your funds — not you.

You take full control over your digital assets when you use a Web3 wallet, such as MetaMask, Trust Wallet, or Coinbase Wallet. With a Web3 wallet, you gain direct access to both your public wallet address and your private key (which you should NEVER share with anybody under any circumstances). This gives you complete ownership and control, allowing you to send, receive, and manage your crypto independently of any third party.

Furthermore, Web3 wallets enable you to interact seamlessly with decentralized applications (dApps), decentralized finance (DeFi) platforms, NFT marketplaces, and more — unlocking a broader range of blockchain utilities beyond simple trading. However, with great power comes great responsibility. It’s crucial to securely store your private keys and seed phrase, as losing them can result in irreversible loss of access to your funds. Owning a Web3 wallet truly puts you in charge of your financial sovereignty.