Understanding Wallets

Learn what a wallet is and what tools you need to make one, use one, and keep one safe.

What is a wallet?

Like a traditional wallet holds cash, crypto wallets hold your cryptocurrency. Crypto wallets allow you to store your crypto, send crypto, and receive crypto.

Think of it like a personal checking account with two sets of keys: a private key and a public key.

Public Key vs. Private Key

A public key serves as the address used to send crypto to the wallet. Think of it like a routing number. You can share this with people so they know they are sending money to the right place.

A private key is meant for your eyes only. It allows direct access to your cryptocurrency wallet - like a bank account password. You should not share this with anyone.

What is a community wallet (or DAO wallet)?

Each DAO has it’s own wallet. It is called a “community wallet”.

All collected funds are stored in the DAOs community wallet instead of being at the disposal of a single individual. Using a community wallet is how members: 1, share their capital and 2, ensure every member has equal rights to that shared capital. Each member will use their public key to transfer funds into the DAOs community wallet.