A cryptocurrency wallet is a digital tool that allows you to store, send, and receive cryptocurrencies like Bitcoin, Ethereum, and others. It doesn’t actually store the coins themselves but rather keeps the private keys that give you access to your cryptocurrency holdings on the blockchain.

Why Do You Need One?

1. Security – A wallet protects your private keys, ensuring only you can access your funds.
2. Ownership & Control – If you hold your crypto in an exchange without a wallet, you don’t fully own it (similar to keeping money in a bank vs. holding cash).
3. Transactions – You need a wallet to send and receive cryptocurrency securely.
4. Access to DeFi & Web3 – Some wallets allow you to interact with decentralized applications (DApps), NFTs, and DeFi services.

Types of Crypto Wallets:

• Hot Wallets (Online)

  • Software-based, connected to the internet.
  • Examples: MetaMask, Trust Wallet, Coinbase Wallet.
  • Convenient but vulnerable to hacking.

• Cold Wallets (Offline)

  • Hardware or paper-based, disconnected from the internet.
  • Examples: Ledger, Trezor.
  • More secure but less convenient.