SATONAACADEMY

SATONA ACADEMY · BEGINNER · 6 lessons · ~30 min

02 UNDERSTAND YOUR WALLET

Learn the role of wallets, exchanges, self-custody and hardware wallets.

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FROM SEED TO WALLET

A seed phrase derives private keys, which control addresses used by a wallet. The wallet coordinates access; it does not hold coins inside the device.

SEED PHRASEPRIVATE KEYSADDRESSESWALLET
Seed phrase to wallet derivation flow

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SIGN WITHOUT EXPOSING THE KEY

A transaction enters the hardware wallet, is checked and signed, then returns to the network. The private key remains isolated inside the device.

TRANSACTIONHARDWARE WALLETSIGNATURENETWORK
Hardware wallet signing a transaction while isolating the key

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TWO CUSTODY MODELS

With an exchange, a third party controls the keys and infrastructure. With self-custody, you control the keys and accept the security duties. Neither model removes risk; responsibilities differ.

EXCHANGEDIFFERENT RESPONSIBILITIESSELF-CUSTODY
Balanced comparison of exchange and self-custody
  1. 01What is a wallet?~5 min →
  2. 02Exchange or personal wallet~5 min →
  3. 03How does a hardware wallet work?~5 min →
  4. 04How does a Ledger work?~5 min →
  5. 05Where are your bitcoins actually stored?~5 min →
  6. 06What if your hardware wallet disappears?~5 min →