How to store crypto assets? This question stumps many newcomers. Private keys, hot wallets, custodial accounts... a bunch of concepts come crashing down, leaving you confused. Worrying that your hard-earned digital assets might be stolen or lost, and not knowing how to mitigate the risks. Actually, understanding these basic concepts and choosing the right storage method can solve most of the problems. Let’s go through it step by step.

**What is custodial? Simply put, it’s the storage location**

You use a bank card to store cash, a safe deposit box to store gold. What about crypto assets? Use a wallet to store them—but here’s a common misconception: the wallet doesn’t hold the actual assets, but rather a "key" that proves those assets are yours.

**Two concepts you must understand**

First, what are crypto assets? Tokens, digital assets, virtual currencies, cryptocurrencies... all refer to the same kind of thing: assets generated, issued, and circulated based on blockchain and other distributed ledger technologies. But note that different crypto assets have vastly different design philosophies and characteristics, with varying returns and risks. Don’t lump them all together.

Second, the critical "two keys." When you create a crypto wallet, the system automatically generates a pair of passwords. Both are essential; missing one means you can’t use the wallet:

**Private Key** is the "commander-in-chief" of your wallet—a randomly generated string of alphanumeric characters used to sign and authorize transactions. Its most important feature is one word: confidentiality. Once leaked, your assets are exposed to risk.