Where are you funds stored?

If you are reading this, then be prepared for a revelation.

The question we get asked the most is: "Does Electrum Web hold my funds? The answer may be a surprise to those who are new to the crypto space. In reality, your funds are not on the app. They are on the blockchain network itself. The app just allows you to access an address and make transactions out of it by using your Recovery Phrase.

“Wait what? Are you sure?”
“I downloaded the app and created my wallet, and you are saying that my funds are not there?”

When you create a wallet, you will be given a Recovery Phrase. And this is where your Private Keys are encrypted. An industry standard allows the use of simple words to be used rather than a set of alpha numeric characters. It’s much easier to back up.

Here is an example of a new wallet created on Trust Wallet. A Recovery Phrase is generated at random by the app, and it is always unique.

Conclusion

After going through this article, hopefully you will begin to understand the key points mentioned:

• Wallet apps do not hold your funds.
• Wallet apps are just a bridge to the blockchain that it is connecting to.
• Always keep the Recovery Phrase secure. If someone else knows it, they can get your crypto.