what is wallet?

What is a wallet?

A wallet is a digital currency (or digital wallet) software that allows users to store and trade their cryptocurrencies. These wallets utilize public and private keys to manage users' assets.

Public keys function like a bank account number, which can be shared with others for sending or receiving funds. In contrast, private keys act like a password that is completely confidential and should never be shared with anyone else.

Wallets are divided into two categories:

- Hot wallets: These include mobile wallets and those provided by cryptocurrency exchanges. They are typically suitable for everyday and quick transactions.

- Cold wallets: These consist of hardware wallets and paper wallets. These wallets are not connected to the internet and are ideal for long-term storage of cryptocurrencies.

The choice of wallet depends on the user's needs, transaction frequency, and the level of security required.