Everything you need to know about crypto and blockchain assets, where they're stored, and how wallets like Exodus help you manage them securely.
Need a crypto wallet that gives you full control of your assets? You can download Exodus here.
In this article:
What are crypto and blockchain assets?
A crypto asset is a digital asset created, stored, and transferred on a blockchain network. For this reason, they are also referred to as blockchain assets. Depending on its design, an asset can serve different purposes.
Some crypto assets, like Bitcoin, were designed for payments or seen as a store of value. Others, such as tokens, represent a utility or value within a specific blockchain ecosystem as defined in a smart contract or by its project team.
Blockchain assets can also be unique, like non-fungible tokens (NFTs), one-of-a-kind digital items stored on the blockchain.
Unlike traditional assets, where ownership is usually tracked on paper and transfers require third-party intermediaries, blockchain assets are digital, and owners can directly control them on decentralized networks. This means they can be sent directly to anyone, anytime, without needing permission from a bank, broker, or institution.
Where is my crypto stored?
Your crypto is stored directly on the blockchain network, and your wallet is a tool for easily interacting with the assets on the blockchain.
Each blockchain, such as Bitcoin, Ethereum, or Solana, works like a public ledger that records all transactions. This shared digital ledger contains the complete record of all transactions and balances and is the source of truth of who owns what on the network.
Copies of the ledger are stored on computers worldwide, which is why blockchains are considered decentralized. As a result, instead of being kept in a centralized account, your crypto is linked to a blockchain address, and the balance of that address is recorded in the shared ledger.
The only way to access the funds stored on a blockchain address is with its corresponding private key, which proves ownership of that address.
No bank, company (not even Exodus), government, or other person can control your crypto without your private key.
Wallets like Exodus allow you to easily and securely manage your private keys and 12-word secret key, which you use to access the funds in your blockchain addresses.
To learn more about Exodus and how to get started, visit: Getting started with Exodus.