Wallets Explained
Cryptocurrency wallets don't actually store coins but provide interfaces to interact with blockchain networks. They manage the private keys that prove ownership of digital assets.
Types of wallets
- Hot Wallets: Connected to internet (convenient but less secure)
- Mobile wallets
- Web wallets
- Desktop wallets
- Cold Wallets: Offline storage (more secure)
- Hardware wallets
- Paper wallets
When choosing a wallet, consider your priorities between security and convenience.