 TITLE: What Is a Cryptocurrency Wallet? CONTENT: ### Custodial Wallets\nMany people start with cloud-based wallets that are hosted or custodial wallets. For example, if you create an account on a cryptocurrency exchange, the exchange may set up and manage a wallet on your behalf.\nWith custodial wallets, you'll log in to your account with a username and password, similar to logging in to a bank account online. You don't have to worry about keeping track of your keys; however, you also don't control the private key—the exchange does.\nThere's a risk of losing your funds if the custodian turns out to be a scammer or is compromised, although some exchanges have insurance and keep most of their cryptocurrency in cold storage, which may provide you with some peace of mind. END