💳Understanding Wallets
A crypto wallet is a tool that lets you store, send, and receive cryptocurrency. Unlike a physical wallet, a crypto wallet doesn’t actually hold coins. Instead, it stores something called private keys—a kind of digital password that gives you access to your crypto.
There are two main types of wallets:
Hot Wallets (Online): These wallets are connected to the internet and are convenient for quick access to your crypto. Examples include mobile apps or browser extensions like MetaMask.
Cold Wallets (Offline): These wallets are kept offline, making them much safer from hackers. Examples are hardware wallets like Ledger or Trezor.
How Wallets Work When you create a wallet, you get:
A public key (like an email address) that others use to send crypto to you.
A private key (like a password) that only you should know—this key allows you to send or access your funds.
Your wallet doesn’t hold actual coins; it simply lets you interact with the blockchain where your crypto is recorded.
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