Wallets, keys and recovery
Crypto Dispensers | Bitcoin learning path
AI-generated narration. Original diagrams; fictional examples.
Reviewed October 22, 2026.

A wallet manages spending access
A Bitcoin wallet is software, sometimes used with a separate device. It helps you receive Bitcoin and authorize spending with keys. The coins aren't files stored inside your phone. The Bitcoin network records transfers. Your wallet uses that record to work out the amount it can spend. Its secret keys provide spending permission.

Who holds the keys?
Custody means responsibility for holding and controlling access. With a custodian, a provider holds the keys. You depend on its security, financial condition and rules for moving Bitcoin out of your account. With self-custody, you hold the keys. You take responsibility for keeping spending access and the required backup safe. Neither arrangement removes every risk.

An address receives, a key spends
A receiving address is a destination supplied by the receiving wallet, usually shown as characters or a QR code. A QR code is a picture a device can scan to read information. You may share the appropriate receiving address to receive Bitcoin. A private key is different: it can authorize spending. Never share it with a sender or support.

Recovery words are not a login password
Many wallets give you recovery words, sometimes called a recovery phrase or seed phrase. Those words can recreate wallet keys. Other wallet designs use different backups. Follow your genuine wallet's instructions. Store its required backup securely and privately. A provider may reset an account password, but it cannot recreate self-custody keys or recovery information it doesn't hold.

Prepare the wallet before paying
A hardware wallet is a separate device designed to protect signing keys. It still needs a safe backup and careful checks of payment details. Before Maya buys, she chooses who will hold the keys and learns the recovery method. She uses the wallet's own receive instructions to get the right destination. She never copies an address from an educational diagram.

Would support need your recovery words?
A stranger offers to fix Maya's wallet if she shares its recovery words. Would a company logo make that safe? No. Keep those words private and contact genuine support independently. Return to stage four to compare receiving information with spending secrets.

Continue: https://www.cryptodispensers.com/learn#lp-ownership