What is a Cryptocurrency Wallet?
A cryptocurrency wallet is a digital wallet which stores your private and public keys. These two keys combined give you access and ownership to your cryptocurrency which is actually stored on the Blockchain ledger. Your public key is what you can give out to others to receive cryptocurrency and your private key is used to authorise transactions and recover your cryptocurrencies from the blockchain if you lose your wallet.
What are the different types of cryptocurrency wallets?
There is a large variety of wallets that provide different ways to store, send and receive your digital currency. Wallets can be online (hot wallet) in a form of a software for your computer, web application, mobile or offline (cold storage) in a paper wallet or hardware device. Offline wallets are the most secure because they are not connected to the internet unless they are sending or receiving transactions meaning they are not hackable.