A cryptocurrency wallet is a tool with which you can interact in a blockchain network. It is oftentimes also called the browers of the blockchain era. Wallets can generate the necessary information to send or receive cryptocurrencies via the blockchain. Among other things, this information consists of one or more pairs of public and private keys.

The private key allows access to cryptocurrencies, regardless of which wallet is used. As long as someone is in possession of their private key (or seed phrase), access to cryptocurrencies is guaranteed, even through different or new wallets.

In general, there are 3 types of wallets:

Software Wallet

Hardware wallet

Paper Wallets

Depending on the function mechanism, a distinction is made between “hot” and “cold wallets”. Wallets in which the private key is stored outside the device and not connected to the Internet are considered “cold wallets”. Hotwallets instead are hooked up to the Internet. Hardware wallets are generally the most secure alternative. Paper wallets, on the other hand, consist of a “wallet” where the private key is printed on a sheet of paper.