What is a Wallet?
Quick Definition
A wallet is a tool that allows users to store, send, and receive digital assets by managing the private keys that control a blockchain address.
Full Definition
A blockchain wallet doesn't actually "hold" tokens in the way a physical wallet holds cash. The tokens exist on the blockchain. What the wallet holds is the private key that controls the blockchain address, along with the software needed to interact with the network by sending transactions, signing messages, connecting to applications, and performing other functions. Wallets come in many forms.
- Software wallets (also called hot wallets) run on a phone or computer and connect to the internet. They are convenient but more exposed to security risks.
- Hardware wallets keep private keys offline in a dedicated device, providing a much stronger security model by reducing exposure to online threats.
- Custodial wallets are managed by a third party (like an exchange) that holds the private keys on the user's behalf, easier to use but reliant on the custodian.
- Non-custodial wallets put the user in full control of their keys. They provide full ownership but also greater responsibility.
Choosing the right wallet
The right wallet depends on the user's needs. For small amounts and frequent transactions, software wallets are convenient. For larger holdings, hardware wallets are the standard for self-custody. For institutional holders, custody is typically handled through institutional-grade solutions that combine hardware security, multisig, and operational controls.
Using Steady with your wallet
STDY is a standard token on Ethereum and Arbitrum, which means it's compatible with virtually all major Ethereum-compatible wallets, software, hardware, custodial, and institutional solutions. Once you hold STDY in any compatible wallet, the rebase mechanism does the rest: your position grows automatically to reflect the performance of our underlying assets, no matter which wallet you use.
Related Terms
Custodial vs. Non-Custodial
ReadCustodial means a third party holds the private keys to your assets on your behalf. Non-custodial means you hold your own keys and control your own assets directly.
Hardware Wallet
ReadA hardware wallet is a physical device that stores private keys offline, providing a strong security model for holding digital assets.
Holder
ReadA holder is anyone who owns a particular cryptocurrency or token.
Multisig Wallet
ReadA multisig wallet requires multiple private keys to authorize a transaction, distributing control across multiple parties or devices.
Private Key
ReadA private key is a secret cryptographic code that gives the holder complete control over the digital assets associated with a specific wallet address.
Self-custody
ReadSelf-custody means holding your own private keys and controlling your own digital assets directly, without relying on a third-party custodian.
Transferability
ReadTransferability is the ability to send a token or asset from one holder to another freely, without restrictions.
Other Glossary Items
Learn about common and essential terms related to Steady and other stablecoin protocols.
Algorithmic Stablecoin
ReadAn algorithmic stablecoin attempts to maintain its value through automated rules that adjust token supply based on market demand, rather than holding equivalent reserve assets.
AML
ReadAML (Anti-Money Laundering) refers to the laws, regulations, and procedures designed to prevent the use of financial systems for laundering the proceeds of crime.
APY
ReadAPY, or Annual Percentage Yield, is the standardized rate of return an asset generates over a year, including the effect of compounding.
Arbitrum
ReadArbitrum is a Layer 2 blockchain network built on top of Ethereum, designed to offer faster and cheaper transactions while inheriting Ethereum's security and infrastructure.
Asset Backing
ReadAsset backing refers to the real-world or on-chain assets held by the issuer to support the value of every token in circulation.
Asset Locking
ReadAsset locking refers to restricting access to funds for a defined period or condition, during which they cannot be transferred or used.
Asset Segregation
ReadAsset segregation is the practice of keeping client or backing assets separate from the issuer's operational funds, protecting them from the issuer's other obligations.
Audit
ReadAn audit is an independent examination of a protocol's code, reserves, or operations by qualified third parties to verify accuracy and compliance with stated claims.
Backing
ReadBacking refers to the assets or mechanisms that support a stablecoin's value and help it maintain its intended reference value.
Blockchain Network
ReadA blockchain network is the system of connected participants and infrastructure that validates, records, and maintains data on a specific blockchain.
Blockchain
ReadA blockchain is a distributed digital ledger that records transactions across a network of computers in a secure, transparent, and tamper-resistant way.
Bridge
ReadA bridge is a mechanism that enables the transfer of assets or data between different blockchain networks.
Clarity Act
ReadThe Clarity Act is a proposed US legislative framework intended to clarify the regulatory treatment of digital assets, defining when they should be treated as securities versus commodities.
Collateralization / Over-collateralization
ReadCollateralization refers to the ratio between the value of assets held in reserve and the value of tokens issued. Over-collateralization means holding more in reserves than the value of tokens issued.
Composability
ReadComposability refers to the ability of different protocols, contracts, and tokens on a blockchain to interact and combine with each other seamlessly.
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