> For the complete documentation index, see [llms.txt](https://docs.bitfoot.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bitfoot.com/new-to-crypto/what-is-cryptocurrency/understanding-wallets.md).

# 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:

1. **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**.
2. **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.