A cryptocurrency wallet is a device used to store, send, and receive cryptocurrencies such as Bitcoin and Ethereum. Although it is called a “wallet,” it does not store the cryptocurrency itself, but rather the private and public keys that are used to access the digital assets and make transactions.
There are two main types of cryptocurrency wallets:
1. Hot Wallets:
- Always connected to the Internet.
- Easy to use and fast in conducting transactions.
- Includes applications and websites that allow you to manage digital currencies.
- More vulnerable to cyber attacks due to constant internet connection.
2. Cold Wallets:
- Offline, making it more secure.
- Includes external storage devices such as USB or papers containing private keys.
- Suitable for storing large amounts of digital currencies for long periods.
### Components of the digital wallet:
- Public Key: Similar to a bank account number, it can be shared with others to receive digital currencies.
- Private Key: Similar to a password, it must be kept secret because it enables access and control of digital assets.
Digital wallets can be mobile apps, computer programs, or physical devices, each offering a different level of security and convenience based on the user's needs.
