A software wallet is a crypto wallet that exists as a program, such as a mobile app, a desktop application or a browser extension, rather than as a dedicated physical device. It creates or imports the user's private keys, usually backed up as a seed phrase, and uses them to sign transactions. Most software wallets are non-custodial, meaning the user alone holds the keys, though exchange apps that keep keys for customers are also software. Because the device is connected to the internet, a software wallet is a form of hot wallet: it is convenient for everyday payments and DeFi, but malware, phishing and fake apps can put funds at risk. Many people therefore keep small amounts in a software wallet and larger savings in a hardware wallet.
Last updated 13 Nov 2026