A crypto wallet is a digital tool that allows you to store, send, and receive cryptocurrencies securely. Instead of storing coins like a physical wallet, it stores private keys — which are like passwords that give you access to your crypto.
🔐 Two Main Types of Wallets:
| Type | Description | Examples |
|---|---|---|
| Hot Wallet | Connected to the internet. Easy to use but more vulnerable to hacks. | MetaMask, Trust Wallet, Coinbase Wallet |
| Cold Wallet | Offline storage. Much safer from online threats. | Ledger, Trezor (hardware wallets) |
🧩 How It Works:
- You get a public address (like your account number) to receive crypto
- You control a private key (like your PIN or password) to access and send funds
- If you lose your private key, you lose access to your crypto — permanently
📦 Wallet Functions:
- Send and receive crypto
- Track balances and history
- Connect with dApps (in DeFi, NFTs, etc.)
- Sign smart contracts
🛡️ Security Tips:
- Never share your private key or seed phrase
- Use 2FA and strong passwords
- Store large amounts in cold wallets