How do crypto wallets work?

How Do Crypto Wallets Work?

Your wallet stores or generates a private key (secret) and derives a public key and address. The address is what you share to receive crypto. When you send, your wallet signs the transaction with the private key. The network verifies the signature and updates balances. You never share the private key. If you lose it and have no backup (e.g. seed phrase), you lose access forever. If someone else gets it, they can steal your funds.