What is Wallet?
Let's find out Wallet meaning, definition in crypto, what is Wallet, and all other detailed facts.
A crypto wallet is a device, physical entity, software program, or service that allows users to store, transmit, and receive digital assets. To put it another way, wallets store private or public keys for cryptocurrency transactions. Though a lot of people don’t fully understand what is the purpose of private keys. To put it simply, they are like a PIN you would use to access your credit card because the data they keep is only used to allow users to access their assets on the blockchain.
There are various types and sizes of wallets for cryptocurrencies. Note that some wallets store various assets, while others focus on one (e.g. Bitcoin). Also, there are two main types of crypto wallets – hot wallets (connected to the internet) and cold wallets (not connected to the internet) that are further subdivided into smaller types.
Hot wallets include:
- Desktop wallets – installed on computers.
- Software wallets – based on the web, can be accessed from anywhere.
- Mobile wallets – installed on phones.
Cold wallets include:
- Hardware wallets – physical devices that hold the private keys of cryptocurrencies.
- Paper wallets – a printed piece of paper that contains private keys.
Keep in mind that while hot wallets might be a little more convenient because they can be accessed from anywhere, cold wallets are more secure because they're not vulnerable to malicious attacks.