What is a crypto wallet?
A crypto wallet is a piece of software that enables you to send and receive cryptocurrencies, such as Bitcoin.
They can be used to store multiple tokens and coins at once – however, most wallets will only support a limited number of cryptocurrencies.
Wallets are used to store something known as private keys: long hexadecimal codes known only to you and your wallet. They must match with a public key so you can spend your money.
Wallets come in many forms. They can be stored on hardware which is occasionally connected to the web to perform transactions (some people keep them in bank vaults the rest of the time) – you can even write the keys down on a piece of paper, which is one method of “cold storage.”
Hosted wallets are akin to traditional banking apps. You can access your balance on multiple devices, and your funds aren’t gone forever if you lose your phone or forget your password.