I really appreciate you comprehensive answer!!! Thank you, now I understand! yes, I don't have any blockchain related background so yours and other guys information is very helpful.

Quote from: mocacinno on November 10, 2020, 12:15:39 PM

Quote from: 8m_zk on November 10, 2020, 12:02:58 PM

Thanks for your information! If I break my wallet and buy a new one how does my crypto transfer to a new wallet? Do I need to connect to blockchain online?
--snip--

From this follow-up question, i can deduct you might be missing some background information about how bitcoin actually works. I'm not trying to insult you or anything, crypto is quite complex to grasp at first, so it's perfectly fine to have some confusions when you first enter this community.

the TL;DR;, simplified answer: bitcoin is not stored in a wallet or on a device...

Your wallet holds private keys (or a master private key from which other private keys are derived). Next to this, your wallet might hold some meta-data (like labels, or some history that can be regenerated by re-parsing the blockchain). This meta-data is actually "unimportant" (at least from a technical point of view), it is not needed to spend your funds, and some of it can be recreated by parsing the blockchain...

Your wallet derives your public key(s) from these private key(s). Those public key(s) are hashed to form your address.

When somebody funds your address, he/she is basically just broadcasting a transaction to the network that uses unspent outputs from the UTXO db as an input, while creating one (or more) unspent outputs funding your address... These transactions are stored on the blockchain (the decentral ledger), NOT in your wallet... The only important thing your wallet stores is your master private key (in ledger's case... Ledger is a HD wallet witch uses a xprv, not random keys), or your randomly-generated private keys... When you restore your wallet with a seed phrase, the new wallet will contain exactly the same master private key as the original wallet, so it'll be able to sign transactions spending the same unspent outputs...