What is wallet encryption?

What Is Wallet Encryption?

Wallet encryption means your wallet file or device is protected by a password or PIN. Without it, someone who gets your device or file cannot use the wallet. Software wallets often encrypt the stored keys; hardware wallets use a PIN. Use a strong password or PIN. Do not forget it; without it (and without the seed phrase in some cases) you can lose access. Encryption is a useful layer but does not replace backing up your seed phrase or protecting it from theft.