What is a cryptocurrency wallet?

cryptocurrency wallet

If you start buying cryptocurrencies, you will need a cryptocurrency wallet. It will allow you to store your crypto, but also to send, receive, buy, or sell it.

However, you will find several types of wallets, and you may have some difficulty finding your way around and making your choice.

How a Cryptocurrency Wallet Works:

First, we will have a quick look at how a Wallet works. Contrarily to what most people think, a cryptocurrency wallet is not storing any of your cryptocurrencies. Indeed, the wallet is just a program that stores your private and public keys and interacts with the Blockchain, allowing you to send or receive your digital currencies and monitor your funds.

cryptocurrency
Credits: Blockgeeks

To be able to access your balance, the private key in your wallet must match its respective public address.

Wallets can be broken down into 3 categories: software, hardware, and paper.