crypto-basics
Crypto Basics: Wallets, Stablecoins and Getting Started
- Difficulty
- Beginner
- Time
- 1 min
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Before you trade, a few foundations save a lot of pain. The biggest one: a crypto wallet doesn't actually hold your coins. This guide covers wallets — the thing everyone gets wrong first — then the two other basics worth knowing early: stablecoins and dollar-cost averaging.
What a crypto wallet really is
Your coins live on the blockchain, a public ledger. A wallet stores the private keys that prove you control them — so a wallet is really a keychain, not a vault. Lose the keys (or the seed phrase that backs them up) and you lose access; share them and someone else controls your funds.
Hot vs. cold
- Hot wallet — connected to the internet (an exchange, a mobile/browser wallet). Convenient for trading and spending; more exposed to hacks and phishing.
- Cold wallet — kept offline (a hardware device, or paper). Far safer from remote attacks; better for holdings you don't touch often.
Custodial vs. non-custodial
- Custodial — a third party (usually an exchange) holds the keys for you. Easy, recoverable if you forget a password — but "not your keys, not your coins."
- Non-custodial — you hold the keys and the seed phrase. Total control, and total responsibility: no one can reset it for you.
A common setup: keep what you're actively trading on a custodial exchange, and move long-term holdings to a non-custodial cold wallet.
Stablecoins
A stablecoin is a crypto designed to hold a steady value — usually pegged to the US dollar — so you can park value or trade without swapping back to a bank. They're the backbone of most trading pairs. Full explainer: What is a stablecoin?.
Dollar-cost averaging
Dollar-cost averaging (DCA) means buying a fixed amount on a fixed schedule instead of trying to time the bottom — it smooths your entry price and takes emotion out. See What is dollar-cost averaging?.
Getting started
- Choose where to hold — exchange (custodial) for trading, a wallet you control for the rest.
- Back up your seed phrase offline, and never share it.
- Start small and learn the mechanics before sizing up — and read up on risk before using any leverage.
Ready to put this into practice?
Pick up where the theory ends — our hands-on, screenshot-by-screenshot Bybit guides are tested on real accounts.
Frequently asked questions
Related guides
What Is Dollar-Cost Averaging (DCA)?
Dollar-cost averaging explained — how buying a fixed amount on a fixed schedule smooths your entry price, a worked example, when it helps, and its trade-offs.
What Is a Stablecoin?
Stablecoins explained — what they are, the main types (fiat-backed, crypto-backed, algorithmic), what people use them for, and the risks like de-pegging and freezes.
Written & tested by
The TradeCookbook team tests crypto exchanges and forex brokers on real, funded accounts and documents each step with original, dated screenshots. Every guide is fact-checked against primary sources and updated as platforms change.
- Hands-on testing on real, funded accounts
- Original, dated screenshots — never stock imagery
- Claims fact-checked against primary sources