Wallets & Security — Crypto Glossary
In crypto, holding your own keys means holding your own security. These terms cover the wallet categories (hot vs cold, custodial vs self-custody), the cryptographic pieces (seed phrases, multisig), and the attack patterns (phishing kits, rug pulls, drainers) that target everyone from first-time buyers to protocol treasurers.
Address Poisoning Address poisoning is a crypto scam where the attacker sends a tiny "dust" transaction from a wallet address that visually matches one of your recent counterp… Approval Drainer An approval drainer is a malicious smart contract that waits for a user to grant it token allowances, then sweeps those tokens into an attacker-controlled wa… Cold Storage Cold storage is crypto custody where keys never touch an internet-connected device. Custodial Wallet A custodial wallet is one where a third party — usually an exchange or a fintech — holds the private keys on behalf of the user. Exit Scam An exit scam is a crypto fraud pattern where the team behind a project — a token, an exchange, a yield platform, or a fund — collects user funds over weeks o… Hardware Wallet A hardware wallet is a dedicated physical device that stores crypto private keys and signs transactions in an isolated environment. Hot Wallet A hot wallet is a crypto wallet whose keys are stored on an internet-connected device — typically a phone, a computer, or a browser extension. Mnemonic "Mnemonic" is the technical term for what most users call a seed phrase — the 12 or 24 words that deterministically generate a wallet's private keys. Multisig A multisig wallet requires multiple signers to authorize a transaction. Phishing Phishing in crypto is an attack where someone tricks you into revealing your seed phrase or signing a malicious transaction. Pig Butchering Pig butchering (from Mandarin "shā zhū pán", 杀猪盘) is a long-form investment scam that pairs a romance or friendship con with a fake crypto trading platform. Private Key A private key is the cryptographic secret that authorizes transactions from a specific blockchain address. Rug Pull A rug pull is a crypto scam where the token's deployer drains the liquidity pool and disappears, leaving holders with a worthless token. Seed Phrase A seed phrase is a 12 or 24-word sequence that deterministically generates every private key in a wallet. Self Custody Self-custody means holding your own private keys and bearing full responsibility for their security. Shill In crypto, to shill a token is to promote it aggressively — usually without disclosing that you hold a position or have been paid. Wallet A crypto wallet is a tool that stores private keys and signs transactions on behalf of a user.