A cryptocurrency wallet is a mechanism for storing a set of public and/or private keys for cryptocurrency transactions. It can be any of the following :
- A hardware device
- Physical medium (such as a piece of paper)
- A software application (on your computer)
- A service (online)
In addition to this basic function of storing the keys, a cryptocurrency wallet more often also offers the functionality of encrypting and/or signing information.
Things to Note
- Your coins do not physically exist on any device or wallet.
- When you own cryptocurrencies, what you really own is a (secret) private key.
- Your coins are only associated with a set of “public/private keys”.
- Your crypto balance or assets are available within the blockchain