Cryptocurrencies are typically stored in a cryptocurrency wallet. This is a complicated topic, particularly since there are so many wallets available. But we’ll try to boil it down to the basic facts.
A cryptocurrency wallet is a software program that stores the private and public keys that connect you to the blockchain where your cryptocurrency exists. Wallets don’t actually store your cryptocurrency but enable you to access it on the blockchain with your public key (your “cryptocurrency address” that the other party in the transaction sees) and private key (known only to you). You must have both in order to complete a transaction. They’re called “keys” because they’re used to unlock your cryptocurrency on the blockchain.
In addition to enabling you to access, send and receive cryptocurrency, a digital wallet also provides a record of transactions that are stored on the blockchain, as well as your current balance.
Types of Cryptocurrency WalletsThere are several different types of digital wallets:
Which digital wallet you choose will depend on your own desire for a balance between security and convenience. Some cryptocurrency exchanges also offer digital wallets for your cryptos.
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